The article discusses a financial scandal in Chile involving LarrainVial Activos AGF’s fund, Capital Estructurado I, which faces regulatory scrutiny for alleged mismanagement. This fund, aimed at alleviating Antonio Jalaff’s debts, resulted in significant financial declines and ongoing lawsuits. The situations of STF Capital and its connections to corruption further complicate the legal landscape, with investigations continuing to develop.
This month marks a year since Chile faced a financial scandal involving false invoices and major corruption, impacting Santiago’s financial landscape. The scandal includes STF Capital and a factoring company, Factop, interlinked with lawyer Luis Hermosilla’s network. One affected firm, LarrainVial Activos AGF, launched a controversial fund, Capital Estructurado I, that is currently under investigation by the Financial Market Commission (CMF) for alleged mismanagement.
The CMF has initiated sanctions against LarrainVial Activos AGF, its directors, and managing partner, Claudio Yañez. Other involved parties include STF Capital and its CEO, Luis Flores. While exact charges are confidential, the CMF’s inquiry is centered on Capital Estructurado I’s management, marketing, and valuation practices.
Capital Estructurado I was initiated to alleviate Antonio Jalaff’s debts, aiming to finance about 25 billion pesos (approximately $26 million) through Inversiones San Antonio and acquire a 3.87% indirect interest in Grupo Patio. The fund marketed to creditors and non-creditor investors through different share series has caused complaints regarding the disadvantages faced by end clients.
Legal actions from 23 investors claim LarrainVial Activos AGF engaged in disloyal management while marketing the fund, which remains under litigation. The Risk Rating Commission (CCR) has monitored proceedings, permitting pension funds to invest in other unrelated LarrainVial funds during this evaluation stage. Meanwhile, the fund’s unit value dramatically dropped 83% from November 2023 to September 2024.
LarrainVial Activos AGF stated its commitment to high management standards and transparency, asserting that all investors received complete information about the fund. The firm is evaluating strategies to protect assets and investor interests.
STF Capital faces serious challenges, including a CMF suspension of operations in March 2023 due to reporting violations, followed by significant fines and registration cancellations. STF Capital is accused of prioritizing its interests over investors, while the firm argues it is compiling evidence to counter the charges but faces leadership issues due to financial strain.
The connection to Factop adds complexity, as it is tied to corruption allegations involving numerous fraudulent invoices. STF Capital claims its leadership distanced themselves from Factop’s controlling owners since March 2023 and seeks to appeal against penalty decisions which are perceived as excessively harsh compared to the implicated Sauer brothers’ penalties.
The ongoing investigations reveal a web of legal challenges, including those surrounding the Jalaff brothers with claims of involvement in invoice fraud, continuing to evolve across several regulatory and legal avenues.
In conclusion, the financial scandal surrounding LarrainVial Activos AGF and its Capital Estructurado I fund reflects significant regulatory scrutiny in Chile. The fund’s role in financing debt and its subsequent decline in value, combined with serious legal accusations against both LarrainVial and STF Capital, highlights the growing complexities within Chile’s financial market. The situation warrants close monitoring as further legal proceedings unfold, impacting stakeholders involved.
Original Source: www.fundssociety.com
