Posts Tagged ‘Illaramendi’

Illarramendi’s Funds Receiver Beats Record, Sues Now For “About” US$ 171 Million in Fraudulent Transfers

February 7, 2012
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Well, when I said last night to stay tuned because something more was coming from the Receiver of Illaramendi’s funds,  I really did not think it would be so soon, but via the same source as yesterday, as well as Setty’s publishing of the suits against Venezuelan Moris Beracha and an even smaller one for “only” US$ 7.6 million, the receiver for Illarramendi’s funds, topped his own record in less than 24 hours, claiming Beracha and affiliated companies received US$ 171 million in illegal payments and transfers.

That is 4.8 times the amount of the suit against Juan Montes I wrote about last night.

Pretty soon, the Receiver will not be able to top himself, the funds had, after all, only US$ 540 million, hard to fraudulently take more than that.

But you never known with these clever Venezuelans. Stay tuned, just in case.

But there is no mincing of words in the accusation:

“For nearly five years, Moris Beracha (“Beracha”) and his affiliated entities, described below, (the “Defendants”) participated in numerous, suspect transactions with Francisco Illarramendi (“Illarramendi”) and the Receivership Entities. Beracha and these affiliates received exorbitant fees, excessive and outlandish rates of interest, kickbacks and other improper payments. Beracha and his entities received this money as Beracha knowingly served as Illarramendi’s source of liquidity to perpetuate Illarramendi’s Ponzi scheme and pay debts and redemptions as they came due. Beracha’s funding came in various forms, including the loaning of money for short periods of time at annual interest rates often exceeding 80%, and the introduction to Illarramendi of investors and important Venezuelan government officials, bankers and financiers who could engage in transactions with Illarramendi. Beracha provided the money or access to money that kept Illarramendi and his scheme afloat.”

and I particularly liked this one:

“Finally, upon information and belief, Beracha assisted Illarramendi with the payment of millions of dollars in bribes to at least one Venezuelan government official. The totality of Beracha’s involvement clearly shows that he was someone who knew about the massive fraud in which Illarramendi was engaged.”

as well as the conclusion:

“The Receiver’s investigation is ongoing. To date, in total, the Receiver has identified approximately $171,675,738 in fraudulent transfers to the Defendants, comprising investor proceeds and other monies that must be recovered for distribution to Illarramendi’s victims and creditors”

Jeez, US$ 171,675,738

These Venezuelans really know how to think big, no?

The rest of the document, I will not bore you with it, the small number of comments shows you are not as interested as I am, show each of the steps taken by Beracha and his companies, 4A Star Corp, Frctal Management, Fractal Factoring Fund, Fractal Holding, Hermitage Coinsultants, La Signoria, etc. etc. to, according to the Receiver, fraudulently transfer assets from Illarramendi’s funds.

Last nights’ brief was more fun, more picturesque, this one is more dense, more legalese. But the result is the same, the Receiver accuses a Venezuelan and in this case, some of his companies, of fraud.

And in Venezuela, little is being said, PDVSA is fine, The National Assembly thinks this has nothing to do with them and the silence in the press, so far, is quite total.

It’s called self-censorship…

Note added: From Setty, more suits:

Against Illarramendi, for “Only” US$ 300 million.

Against Francisco Lopez and relatives: US$ 29 million

Against Odo and Nacy Habeck: US$ 7.6 million