What we had all feared and kept talking about for months here has now been made official by Central Bank Chairman Jose Lois Malkum thru a major TV address where he stated that a group of bank officials and shareholders committed the greatest bank fraud in our history by using savers funds to fund their personal debts abroad, paying off politicians, media people and buying hundreds of other businesses for personal gain and fame.
The fraud exceeds US$500 million dollars. The government has to take responsibility for close to RD$17,000 million which cannot be now recovered to be able to pay savers and investors not involved in this fraud.
Baninters chief officers involved will now be charged with the greatest fraud in Dominican history. Malkum even went as far as to mention that the actions by R.M. "Figureo"(my own nickname for him) is tantamount to treason, since DRs national security may have been affected.
The Central Bank will seek help from Banco Internacional de Desarrollo and U.S. authorities to help Hippo carry thru this huge mess. Malkum mentioned that Figureo has been at this for 14 years. He also blamed some of the problems with the dollar on the millionaire tranfers been made to foreign accounts to help pay for the incredible debts accumulated by these thieves.
Malkum also threatened to jail and punish anyone who broadcasts or publishes any information leading to false rumors or wronful information that could cause damage to DRs financial system
Let it be known that I am just passing information being made public by the government. Unless what I saw and heard on TV tonight is a dream, I believe I am not making this up. This is the most unreal thing I have ever seen on TV in my lifetime.
In fact, Malkum even mentioned the case against banker Keating in that huge fraud in the U.S. as a similar case, but perhaps bigger, because of the magnitude in this small country.
He also reassured savers and investors that the banking system is safe and that their money is safe. But he also said that the government will carry a heavy load in solving the damage done by Baninters fraud boys.
All properties, cars, luxury goods and assets owned by the Baninter group have now been confiscated and a major indictment will be forthcoming against these thieves. The bank shareholders will lose everything.
TW
The fraud exceeds US$500 million dollars. The government has to take responsibility for close to RD$17,000 million which cannot be now recovered to be able to pay savers and investors not involved in this fraud.
Baninters chief officers involved will now be charged with the greatest fraud in Dominican history. Malkum even went as far as to mention that the actions by R.M. "Figureo"(my own nickname for him) is tantamount to treason, since DRs national security may have been affected.
The Central Bank will seek help from Banco Internacional de Desarrollo and U.S. authorities to help Hippo carry thru this huge mess. Malkum mentioned that Figureo has been at this for 14 years. He also blamed some of the problems with the dollar on the millionaire tranfers been made to foreign accounts to help pay for the incredible debts accumulated by these thieves.
Malkum also threatened to jail and punish anyone who broadcasts or publishes any information leading to false rumors or wronful information that could cause damage to DRs financial system
Let it be known that I am just passing information being made public by the government. Unless what I saw and heard on TV tonight is a dream, I believe I am not making this up. This is the most unreal thing I have ever seen on TV in my lifetime.
In fact, Malkum even mentioned the case against banker Keating in that huge fraud in the U.S. as a similar case, but perhaps bigger, because of the magnitude in this small country.
He also reassured savers and investors that the banking system is safe and that their money is safe. But he also said that the government will carry a heavy load in solving the damage done by Baninters fraud boys.
All properties, cars, luxury goods and assets owned by the Baninter group have now been confiscated and a major indictment will be forthcoming against these thieves. The bank shareholders will lose everything.
TW