Belarusian Group Enters Real Estate Sector: $410 Million Payments to Lagos and Vargas Coincide with Ex-Minister Muñoz’s Disqualification

Original article: Arista bielorrusa se mete en inmobiliaria Fundamenta: pagos por $410 millones a Lagos y Vargas coinciden con la inhabilitación del exministro Muñoz

New details have emerged regarding a web of influence, bribery, and money laundering being investigated by the Los Lagos Regional Prosecutor’s Office in the case involving Consorcio Belaz Movitec Spa (CBM), known as «Belarusian» Belarusian. This case is interconnected with real estate developer Fundamenta.

According to a report by CIPER, accounting documents provided by the Internal Revenue Service (SII) to the Public Ministry reveal that the firms owned by lawyers Eduardo Lagos and Mario Vargas—currently in preventive detention for the CBM case and charged with bribery and money laundering—billed over $608 million to a company under Fundamenta’s control. Of that amount, $410 million aligns with a legal strategy that included the «interposition of recusal» against then-Supreme Court Minister Sergio Muñoz, leading to his disqualification.

Muñoz’s disqualification, after having ruled against Fundamenta’s interests, allowed for a crucial change in the Third Chamber’s composition of the Supreme Court. The now-removed judge Ángela Vivanco, who is under investigation for allegedly receiving bribes from Lagos and Vargas in the CBM case, temporarily assumed the presidency and requested that judge Diego Simpertigue replace Muñoz on the panel. Both judges later voted in favor of Fundamenta, reversing the original ruling and unblocking one of its key projects in Ñuñoa, the Eco Egaña Sustainable building.

Massive Payments

SII information, responding to a request from the Prosecutor’s Office, details that the firm Lagos, Vargas & Silber Legal Advisors Limited invoiced $414 million to Plaza Egaña SpA, a company controlled by Inmobiliaria Fundamenta.

CIPER revealed that the Excel sheet sent by the tax authority specifies that the details of this legal consultancy included:

“Advising the board and general manager regarding case Roll 1085-2022, strategy definition, drafting legal reports in the matter, preparing summary briefs, filing for recusal, and nullity incidents before the Higher Courts of Justice in 2022 and 2023.”

Case Roll 1085-2022 pertains precisely to the case in which Muñoz was recused and disqualified. The environmental dispute with Ñuñoa neighbors had stalled the Eco Egaña project, a $300 million initiative that includes 1,752 apartments in three towers, a fourth office tower, and nearly 8,000 m² of commercial spaces.

The initial ruling of the chamber, which included Muñoz, was unfavorable to Fundamenta.

Despite documents showing this massive payment linked to the strategy that involved the recusal, neither Vargas, Lagos, nor Silber appeared as visible sponsoring lawyers in that case. The formal request to disqualify Muñoz was filed by lawyer Marco Fuentes, a friend of Vargas for the past 15 years.

This legal action occurred after Fundamenta detected that the judge’s daughter, Graciel Muñoz Tapia, had signed purchase agreements for two units in Eco Egaña Sustainable.

According to a sworn statement from a sales executive at Fundamenta, the judge’s daughter reportedly claimed that her father advised her to «move the funds» from that project.

As a result of this recusal, Muñoz would later face constitutional charges and be removed from his position in the country’s highest court.

Change in the Court and Favorable Ruling for Fundamenta

Muñoz’s departure had an immediate effect: the ruling that was previously adopted and adverse to Fundamenta was rendered void, and the case was reviewed anew. Ángela Vivanco temporarily presided over the Third Chamber, and instead of Minister Soledad Melo—who was meant to replace Muñoz—requested that Diego Simpertigue join the panel.

The duo Vivanco-Simpertigue ruled in favor of the developer, who was a client of Lagos and Vargas, thus overturning the initial verdict. This ruling not only unblocked the Ñuñoa project but also paved the way for a subsequent civil action in which Lagos and Vargas, representing Fundamenta, sued the government in December 2023 for $25 billion at the time (equivalent to over 700,000 UF). This lawsuit for extracontractual liability sought compensation for damages caused during the project’s suspension, including lost profits, moral damages, and emergent damages.

Similarities with the CBM Case

The similarities with the modus operandi of the CBM case are striking. Just as in that case, potential anomalies in the processing of Fundamenta’s case have been described. A court reporter, Sandra Araya, testified under oath that Minister Vivanco pressured her to expedite the drafting of the ruling in favor of the developer.

“[Minister Vivanco] indicated that the reason for her call was the Fundamenta case, because as the chamber president, she received a complaint from the lawyers involved in that case assigned to me. She told me it had been pending in the Court for months without being scheduled, which meant a multimillion-dollar loss for the company that had its project stalled. She instructed me to review the situation and tell her when I could schedule the case, insisting it should be as soon as possible and to communicate that to her personal phone,” stated the reporter.

Moreover, for this ruling, Vivanco was the one who arranged for Simpertigue, and not another minister, to join the panel.

When previously consulted by CIPER about this request, Vivanco argued: “What happens is that Melo was from the First Chamber and had much less relation to cases of this nature.”

Fundamenta Terminates Relationship with Lawyers Lagos and Vargas

Contacted by the investigative media, Fundamenta representatives responded through the communication consultancy Nexus. They provided two documents explaining that it was lawyer and former deputy Gabriel Silber (PDC) who contacted the developer through one of the investors, and that the consultancy provided included «interactions with neighbors, relationships with authorities, and support in administrative and judicial processes.”

When specifically asked if this «support in the administrative and judicial process» related to Muñoz’s recusal, the WhatsApp response indicated that this was outlined in their documents, where they stated that the consultancy included “support in legal strategy through the provision of legal reports, but not representation in the cases.”

Ultimately, Fundamenta announced that, upon learning about the investigation involving Lagos and Vargas in the CBM case, the company decided to terminate their contracts. In a statement, they said: “In order to reactivate the Egaña project, we have worked with dozens of professionals, whom we have never doubted their integrity and honesty, therefore the actions of these professionals scandalize and outrage us if the facts alleged against them are true.”

Chain of Payments and Relationship to Judicial Process

SII records detail a total of six invoices amounting to $608,283,601 issued to Plaza Egaña SpA between October 2022 and December 2023 by the firms: Comprehensive Legal Advisory SpA, Lagos and Associates SpA, and Lagos, Vargas & Silber Legal Advisors Limited, belonging to lawyers Mario Vargas, Eduardo Lagos, and Gabriel Silber.

The chronology of payments coincides with key milestones in the judicial process:

– October 3, 2022: First invoice for $33 million, on the same day a vote was scheduled in the Court that did not take place.

– October 22, 2022: Invoice for $34 million, three days after the Third Chamber reviewed the case (an adverse initial ruling that was never published).

– March 21, 2023: Invoice for $53 million, twenty days after the favorable ruling was signed by Vivanco and Simpertigue.

– April 5, 2023: The largest invoice, for $414 million. According to CIPER, the description of the services reported by the SII corresponded to legal advisory services to the board and general manager of Plaza Egaña SpA regarding case No. 1085-2022, in which Sergio Muñoz was recused and where lawyers Silber, Lagos, and Vargas did not appear publicly.

“Strategy definition, drafting of legal reports regarding the case, preparation of legal briefs, filing for recusal, and incident of nullity before the Higher Courts of Justice, in 2022 and 2023. UF 11,537.5 (UF value as of 08-05-2023 $35,943.26),” states the document.

– December 27, 2023: Invoice for legal services as per a fees contract linked to a new judicial strategy: “the civil lawsuit against the state representing Plaza Egaña SpA, in which lawyer María Paz Guerra Fuenzalida (sister of former prosecutor Guerra) also participated, demanding compensation of more than $25 billion.”

This web reveals a profound connection between the actors of two major cases of alleged judicial corruption, where million-dollar payments, concealed legal strategies, and crucial judicial decisions appear to have converged to benefit the interests of a company, questioning the independence and transparency of a part of the Chilean justice system. The Prosecutor’s Office now possesses these documents that sketch a map of relationships and interests extending beyond the CBM case.