Guilty Verdict: Osvaldo Villalobos was led from the courtroom in handcuffs yesterday after being convicted of fraud and financial intermediation by three San José judges. Villalobos, who ran an investment operation known as “The Brothers” with his fugitive brother Enrique Villalobos, was sentenced to 18 years in prison.

Two Venezuelans accused of staging an overthrow of Venezuelan President Hugo Chávez in April 2002 have applied for refugee status in Costa Rica, Public Security Minister Fernando Berrocal told the press yesterday.

Free Calypso Concert
Performed by Manuel Monestel and Manuel Obregón with calypso players from the Caribbean port of Limón, 7 p.m., Spanish Cultural Center, Barrio Escalante, Ave.13, Calle 31, San José. Info: 257-2919, ext. 118.

Ballad Concert
Arnoldo Castillo presents his debut CD, 7:30 p.m., Chateau 1525 Restaurant, north side of the National Library, San José. Info: 291-6403.

By Blake Schmidt
Tico Times Staff | bschmidt@ticotimes.net

Financier Osvaldo Villalobos was convicted of fraud and illegal financial intermediation yesterday afternoon and escorted out of court in handcuffs.

He and his fugitive brother Luis Enrique Villalobos were accused of fraud, illegal financial intermediation and money laundering for their involvement in an investment scheme known as “The Brothers.”

Osvaldo was acquitted of the money laundering charges because judges determined that the prosecution did not prove he was aware The Brothers received illicit funds from Canadian drug traffickers.

Osvaldo faces an 18-year prison sentence, which defense attorneys said they will appeal. He was also sentenced to eight months preventive prison while his case is being appealed; defense attorneys may begin the appeals process after he is read his sentence July 8. 

The whereabouts of his brother Luis Enrique, who is wanted by the International Police (INTERPOL), are unknown, which is why the accusations against him were not addressed in this trial.

The verdict ordered that more than 100 investors be awarded millions of dollars in civil complaints attached to the criminal charges. However, judge Jeaneth Villareal said the $7 million in accounts that authorities froze in 2002 will remain in the hands of authorities for now.

What will happen with most of the hundreds of millions of dollars that 6,300 investors had invested with The Brothers is still unknown.

The Brothers ran an unregulated personal loan business for what some believe to be as long as 20 years that paid mostly foreign and elderly investors up to 3% monthly interest.

By Amanda Roberson
Tico Times Staff | aroberson@ticotimes.net

U.S. citizens who usually celebrate their country's Independence Day holiday by partying at the Cervecería Costa Rica in Alajuela, northwest of San José, will have to get their hotdogs and beer elsewhere this year -- for the first time in 47 years, the American Colony Committee (ACC) will not be throwing its annual picnic July 4 picnic, according to committee president Susan Tessem.

There are “a variety of reasons” the committee has decided to cancel this year's event, some of which are financial and others of which are “committee situations,” Tessem said, declining to name other specific reasons for the picnic's cancellation.

“We needed to focus on getting re-energized and reorganized for next year,” she said, explaining that the 35-member committee has firm plans to resume this annual tradition on July 4, 2008.

In the past, the July 4 bash has drawn as many as 5,000 U.S. citizens and their families donning red, white and blue (TT, July 8, 2005). Lots of food and drink, games and music from the University of Costa Rica (UCR) concert band have made the picnic festive and colorful, and numerous businesses and individuals have donated to make the free event possible.

Also, the picnic has always been a place for newcomers to hook up with cultural organizations and nonprofits, as many of these groups set up booths on the Cervecería grounds.

The committee will soon begin planning for next year's event and plans to hold meetings about every month and a half throughout the year until July 4 approaches and the meetings become more frequent, Tessem said.

The Tico Times traditionally publishes a picnic program that's inserted in the newspaper and handed out at the event. This year, we'll be including a special July 4 supplement in the edition that comes out June 29, the Friday before this holiday. The supplement will include a greeting from the U.S. Ambassador, information about other July 4 events around Costa Rica, photos from past picnics, articles on July 4 traditions and information on what the ACC has in store for next year.  

Two Venezuelans accused of staging an overthrow of Venezuelan President Hugo Chávez in April 2002 have applied for refugee status in Costa Rica, Public Security Minister Fernando Berrocal told the press yesterday.

These former Venezuelan military agents, identified as Néstor González and Henry López, have already presented their requests to the U.N. High Commissioner for Refugees (UNHCR) a necessary step in the process of gaining refugee status, and their case is now being considered by the General Immigration Administration.

When the case has been ruled on, it will be made public by Presidency Minister Rodrigo Arias, Berrocal said.