The defense began its closing arguments Friday in the case of financier Osvaldo Villalobos, accused of fraud, money laundering and illegal financial intermediation for his involvement in an investment scheme he allegedly ran with his fugitive brother, Luis Enrique Villalobos.
Defense attorney Alexander Ruiz pointed to holes in a Prosecutor's Office investigation, which he said failed to prove that the financial operation known as “The Brothers” doesn't have the money to pay back investors, as prosecutor Walter Espinoza claims.
Ruiz pointed to the prosecution's inability to investigate accounts with tens of millions of dollars the brothers had in U.S. banks. He also cited a 1999 report showing that Villalobos-linked businesses have assets in the form of real estate comprising at least 7,500 square kilometers.
He said The Brothers paid interest for 20 years and that “for 20 years, people were satisfied with their services.”
Focusing on the fraud and financial intermediation charges, Ruiz pointed to a Superintendence of Financial Entities (SUGEF) review of Ofinter S.A. in 2002, in which no actions were taken against the money exchange business run by Osvaldo.
“SUGEF reviewed Ofinter. If it detected any accounting irregularities, it could have administered sanctions … but it didn't,” Ruiz said.
Ofinter is the business that the prosecution alleges was used as a cover for a fraudulent money laundering scheme in which Osvaldo Villalobos and his brother Luis Enrique convinced unknowing foreign investors that they were running a legitimate business that was allegedly illegal.
The Chief Prosecutor's Office estimates that some 6,300 clients invested money in The Brothers. For more than 15 years, The Brothers paid monthly interest payments of 2.8-3% of investments, which in the later years were accepted only in sums of $10,000 or more. Though the total figure invested with the business is unknown, attorneys close to the case have estimated it could be more than $800 million (TT, Feb. 1, 2003).
The prosecution presented its closing arguments last Tuesday. After the defense has presented its final arguments, Osvaldo will give his final testimony before the judges decide on a verdict, expected in the next few weeks.
Osvaldo has maintained he is innocent of the charges against him. |
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