WHITE COLLAR CRIME EPIDEMIC ROCKS COSTA RICA: EXPATS AND INVESTORS BEWARE

A Stark Warning for Expats and Investors

The US Department of State has issued a stark warning to individuals considering moving to or investing in Costa Rica, highlighting the country’s dismal record on protecting the legal rights and interests of foreign residents. The warning comes as authorities struggle to keep pace with rampant scams involving real estate, investments, contract bribery, and banking.

Types of Financial Malfeasance in Costa Rica

• Real Estate Scams: Expats and investors are being targeted by scammers who promise lucrative returns on property investments.
• Ponzi Schemes and Pyramid Schemes: These types of financial scams have been reported in Costa Rica, with victims losing significant amounts of money.
• Money Laundering: The country’s lax banking laws have made it an attractive destination for money launderers.

Notable Cases

• In 2009, a Mexican bank chain stole billions of dollars from Costa Rican citizens by offering high-yield savings accounts and then disappearing with the funds.