We have
reported from time to time that Enrique has
assured us of his intention to begin the
repayment of his creditors as soon as
conditions permit him to do so. A
frequently asked question has been: "What
is it that prevents him from doing so now,
if he is really serious about repayment of
the debts he has acknowledged."
Both we (UCCR) and Enrique have tried to
explain the reason for this, but the
frequency of questions asked about the
subject suggests that our attempts have not
been adequate for many investors. We hope
that this message will clarify the banking
situation and justify the decision of
Enrique to await the results of his
brother's trial.
The obstacle faced is the charge of: MONEY
LAUNDERING.
As you know, this is one of the three
charges filed against The Brothers. Enrique
has repeatedly told us that were it not for
the money laundering he could begin
repayment. As long as this accusation
remains in effect Enrique cannot move
capital without risking the disclosure of
its location and its destination - which, in
turn, exposes the money to possible freezing
or confiscation. If this were to happen it
would be a disaster for all of us who
believe that our best chance for recovery of
our investments depends upon the integrity
and solvency of Enrique.
Some history may be helpful. The event of
9/11 triggered the development of restraints
on the transfer of capital throughout the
international banking system. These
measures were originally designed to
interrupt the financing of terrorism; but
they also included the tracking of movement
of "dirty money" (defined as money obtained
from illicit activities). Not only was the
dirty money targeted but so too any income
derived from the use of that money.
It is our belief that our money was
positioned by Enrique in corporate bank
accounts where it is safe and possibly
working. As long as it remains there it
enjoys a certain immunity from suspicion and
the consequent threat of attachment.
However, any attempt to liquidate capital
and transfer the proceeds to a new owner -
be it Enrique or an investor - would attract
immediate attention, and the money could be
regarded as tainted (i.e. dirty).
The banking regulations since 9/11 require
that corporations making wire transfers
declare to whom the funds are being sent,
and for what purpose. It is highly doubtful
that our money would survive the scrutiny
received in such a transaction as long as
there is a money laundering charge on the
books. It is no wonder then that Enrique is
anxious to go to court and have that charge
against his brother removed.
The irony is that the money laundering
charge is undoubtedly the weakest accusation
the prosecutor has to offer. As far as we
have been able to discern, the single
instance of laundering postulated by
Espinoza is that of the St. Onge of "oil
crew" fame. As you may recall, it is
alleged that The Brothers received a deposit
from St.Onge in the form of a check drawn
upon his account in the Banco Nacional in
Jacó. If the money was dirty (in this case
obtained from the sale of narcotics), it
should be obvious that the bank in Jacó
had cleansed it before it ever reached the
Mall San Pedro. As a matter of fact, money
laundering by the Oil Crew was investigated
by the Canadian government, who did not find
evidence to support such a claim.
We remain convinced that Enrique knows best
how to protect our money from those who
would not hesitate to use current
international banking regulations to their
own advantage.
Thank you.
P.S.
Some of you are no doubt aware of the
revelation by the media during the past week
of the system of banking surveillance and
reporting headquartered in Belgium and
employed by the U.S. government in the war
on terrorism. Although controversial from
the standpoint of the invasion of privacy,
there is no disagreement that the system has
been very successful in providing valuable
information to the government for tracking
terrorist activities.