Published On: Thu, Nov 22nd, 2012

Millions missing from Colombia financial fund operated from Curacao

WILLEMSTAD – Recently we published an article (click here for article) on Colombian’s largest stock brokerage Interbolsa. Colombia is liquidating Interbolsa after the company failed to make a scheduled payment, forcing the central bank to inject cash into the economy and the government to repeat that it's a one-time case and not indicative of wider financial problems.

One of the largest media sources in Colombia, El Espectador,  is doing its investigation on this case and we have received a letter they had sent to the President of the Central Bank of Curacao and Sint Maarten on November 19, 2012. (We publish this letter with the reporter’s consent)

November 19, 2012

Dr. E.D. Tromp
President of the Centrale Bank van Curaçao en Sint Maarten
Willemstad, Curazao
Fax: (599 9) 461-5004

Re: Premium Capital Appreciation Fund B.V.

Dear Dr. Tromp,

Premium Capital Appreciation Fund B.V., a fund organized under the laws of Curaçao, has stopped redemptions this month and has admitted to its investors that some US$125 million of its total assets of US$174 are tied to speculative investments in Fabricato, a money-losing Colombian textile manufacturer, and to Interbolsa, the leading Colombian brokerage which the Colombian government took over on November 2, 2012.

I write for El Espectador, a newspaper in Bogotá. I have been in contact with dozens of investors ever since Interbolsa went under. They have told me that through its offices in Colombia Interbolsa offered them a fixed-income, stable-return fund in US dollars in Curaçao, the Premium fund. They deposited Colombian pesos into an Interbolsa account in Colombian or authorized their Interbolsa account to be debited for an investment in US dollars to be made in the Premium fund.

The investors are now very concerned upon learning that Premium has admitted to millions of dollars in loans to Interbolsa stockholders or clients, making the recovery of their investment a very uncertain proposition.

The investors and the media in Colombia have been asking the Colombian regulators for answers over the Interbolsa debacle. The investors assert that they never contacted a fund in Curaçao of their own, that they never went to Curaçao, that all their financial dealings took place through Interbolsa and its sales force and staff in Colombia.

Regulators in Colombia have been saying that the authorities in Curaçao are the ones that should be answering questions about Premium.

On November 19, 2012, Luis Guillermo Vélez, the Superintendent of Corporations (Superintendente de Sociedades) gave an interview to the Caracol radio network. He again reiterated that it is the government of Curaçao that should know if Premium was well managed or not and that the question of whether any assets are left in the Premium fund should be addressed to Curaçao authorities.
The following are quotes from the interview:

Luis Guillermo Vélez, Superintendente de Sociedades, dijo en Caracol: “Todo lo que tiene que ver con el fondo Premium lo deben responder las autoridades de Curazao”…………”Dentro de la malla del Grupo Interbolsa no aparece el fondo Premium, es la malla que está reportada por ellos”…………. “No le puedo dar datos sobre Premium, esa pregunta hay que hacérsela a las autoridades de Curazao. Ellos tienen la responsabilidad sobre cómo se manejaba ese fondo, si se manejaba bien o se manejaba mal, y qué activos hay en ese fondo”………..”No hay forma de saber la información de un fondo en Dubai, o un fondo en Islas de Man o un fondo en Jersey o en Curazao, hay cientos de miles de fondos de estos en el mundo”……..”La ley que se aplica a la operación de Premium a pesar de que tenga algún tipo de representación o presencia en Colombia esas normas son las de Curazao y las que deben responder por eso son las autoridades de Curazao”.

Translation: Luis Guillermo Velez, Superintendent of Corporations, Caracol said: "Everything that has to do with the Premium fund should responded by Curacao authorities" ............ "Inside Interbolsa Group’s mesh does not appear Premium Fund, is the mesh that is reported by them "............. "I cannot give details about Premium, that question must be asked to the Curacao authorities. They have the responsibility for how the fund was managed, if handled well or badly handled, and what assets are in the fund "..........." There's no way of knowing the background information in Dubai, or background Islands of Man or Jersey or background in Curacao, there are hundreds of thousands of these funds in the world "........" the law that applies to the operation of Premium despite having some kind of representation or presence in Colombia these standards are Curacao and the authorities of Curacao must answer for it is ".

I am writing to request that you agree to an interview by telephone about the Premium fund and the supervision of the Central Bank over said fund. Kindly let me know what is a convenient day and time to call you and what is the number I should dial.

Very many thanks,

Alberto Donadio

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