Chile commemorates a year since a significant financial scandal involving LarrainVial Activos AGF and STF Capital. The controversy revolves around the fund Capital Estructurado I, leading to regulatory charges against both firms and ongoing investigations. The case highlights issues of financial oversight and ethical management in the country’s financial sector.
In the past month, Chile marked the anniversary of a significant financial scandal, involving false invoices and multiple parties, including STF Capital and Factop. Central to this affair is a corruption case associated with lawyer Luis Hermosilla, which has impacted Santiago’s financial sector significantly, particularly affecting the management firm LarrainVial Activos AGF.
LarrainVial Activos AGF became involved in controversy surrounding its fund, Capital Estructurado I, launched in late 2022. The firm faces a sanctioning process initiated by Chile’s Financial Market Commission (CMF), which has levied charges against the firm and its leadership, including Andrea Larraín, Sebastián Cereceda, and other directors. Additionally, STF Capital and its executives are implicated in the proceedings since they allegedly contributed to the misconduct.
The fund was designed to manage debts owed by Antonio Jalaff and secure an indirect interest in Grupo Patio. Following its launch, legal issues emerged concerning the structuring of the fund, which included two types of share series that led to complaints from investors about potential negligence by its management and the broker involved.
Regulatory actions have escalated, including a lawsuit from 23 investors against LarrainVial Activos AGF. The accusations posit that the firm was aware of Jalaff’s precarious financial state during the fund’s promotion. The financial impacts are considerable, with the value of fund units plummeting dramatically from nearly $28.3 to just $4.7 within a year.
LarrainVial Activos AGF has expressed confidence in its compliance and management practices, assuring stakeholders of transparency regarding fund risks and terms. Meanwhile, STF Capital faces harsher scrutiny, with previous sanctions and ongoing investigations into its operations and management.
The situation is further complicated by the association of both firms with Factop, which is embroiled in corruption allegations. STF Capital’s leadership is actively contesting the charges while also navigating significant financial strain, which has led to operational suspensions and critical fines imposed by the CMF. The matters continue to evolve amid various legal channels and ongoing investigations into related corruption activities.
In summary, LarrainVial Activos AGF has been embroiled in a significant scandal following the launch of Capital Estructurado I, leading to regulatory charges and investor lawsuits. The firm maintains confidence in its practices, while STF Capital faces dire consequences for its involvement. This situation underscores the critical need for transparency and compliance in financial management amid ongoing investigations that may further affect the involved parties.
Original Source: www.fundssociety.com
