Financoop: Seniors Call Out Lack of Progress in Fraud Case Affecting Over 2,000 Savers

Original article: Financoop: Adultos mayores acusan nulo resultado en causa por fraude

After eight years of investigation without formal charges, there are accusations of an attempt to let the crimes affecting over 2,000 savers expire.

This Friday, January 30, the 7th Guarantee Court in Santiago was supposed to hold a hearing to address the dismissal of the defendants in the investigation concerning alleged fraud and violations of Law 20.720 (Bankruptcy Law) linked to Financoop Cooperative, a criminal procedure initiated in May 2018. The defense for the accused argues their request is based on the expiration of the criminal action, as the Public Prosecutor’s Office has failed to file formal charges in these eight years.

The investigation encompasses various lawsuits alleging economic damages exceeding $17 billion pesos, which were formalized in July 2018. According to the evidence, the cooperative implemented a forced capitalization of 40.32% of the term deposits of savers, converting them into shares. The victims, which number in the thousands and more than 200 of whom are plaintiffs, indicate that this process occurred under the threat of losing all of their funds.

From a technical standpoint, the plaintiffs argue that the Centro Norte Prosecutor’s Office has not considered evidence submitted since November 2022 related to the Bankruptcy Law. This evidence suggests an unjustified decrease in the assets due to the transfer of debts that did not meet the criteria to be classified as overdue. Additionally, it is questioned that the expert reports conducted by the Forensic Laboratory (LACRIM) failed to include evidence regarding a supposed fictitious asset loss that occurred in January 2018.

The affected group states that this case represents a significant blow to cooperativism in Chile, particularly for elderly members who constitute the backbone of savers. Legal representatives warn that a dismissal could create instability and a potential bank run on the current entity, fueled by a perception of impunity within the judicial system.

Finally, the complainants emphasize that the lack of results in nearly a decade of legal proceedings has left hundreds of families in economic precariousness. For the savers, the outcome of this hearing not only determines the future of their savings but also tests the Chilean criminal justice system’s ability to pursue complex financial crimes that affect vulnerable sectors.

Despite the years that have passed, the dismissal hearing has been rescheduled for March 27.