Corporate Fraud And Violations Of Banking Regulations Generates Legal Action From Davos International Bank Against Former Officers
The Davos International Bank Directive announced that legal action against former officers comes as the closing chapter of a year of research conducted by a team of experts, in which activities undertaken to defraud the institution were detected, in violation of compliance rules, code of ethics and international banking regulations.
ST. JOHN'S, Antigua, Nov. 30, 2012 /PRNewswire/ -- Davos International Bank, a bank established under the laws of Antigua and Barbuda, filed a lawsuit for about $ 8.5 million plus damages and prejudice against its former officers Rodrigo Fernandez Tinoco, Andres Omar Sotillo, Jose Daniel Carrillo, Osleidys Estrada, and their companies Activa Holdings and SCP Holding Inc, for corporate fraud, breach of their ethical obligations and financial compliance standards. The legal action was introduced in the Eastern Caribbean Supreme Court in the High Court of Antigua and Barbuda under document. ANUHCV2012, after Davos International Bank internal controls and an audit report revealed that these former employees used the Davos International Bank business platform to manage operations against company guidelines and thus taking advantage of business opportunities which represent the appropriation of large sums of money on personal benefits. Added to this, the report revealed lending to related parties without any collateral contravening Banking laws, company policies, and compliance standards in accordance with international banking regulations. Auditors findings made during the investigation and reflected in the audit report presented to the Board of Directors earlier this year, have strengthened internal controls of the organization and ensured its solvency and positive results for the following years, as confirmed by the latest scores obtained from the regulators of the jurisdiction. As a result of this process, the Board has confirmed the effort of the actual Bank Executives in strengthening the organizational structure ensuring operations efficiency and foremost complying with all international banking regulations, and internal company policies. As soon as the banking authorities of Antigua and Barbuda were alerted by the legal representatives of Davos, an investigation and inquire was opened on the illegal business operations of these former officials, a speedy resolution of this legal situation is expected.