Dominican Republic’s Financial Crime Investigation Procedures Under Scrutiny
Major Fraud Scandal Rocks Financial Services Company
A massive fraud investigation has led to the arrest of seven executives from Cooperativa de Ahorros y Crédito Herrera (Coop-Herrera), a financial services company in the Dominican Republic. The operation, dubbed “Operation Owl,” was conducted by the Public Prosecutor’s Office and resulted in charges against the accused for criminal association, falsification of public and private documents, and identity theft.
Fraudulent Activities Uncovered
According to investigators, the executives engaged in fraudulent activities, including:
- Simulating loans
- Issuing fake financial certificates
- Diverting funds from company members and savers
The scheme allegedly went undetected for several months before being uncovered by a joint investigation effort between the Public Prosecutor’s Office, the Financial Investigation Unit, and the Prosecutor’s Office of Santo Domingo West.
Arrests and Detention
The arrested executives, including:
- Jorge Eligio Méndez
- Gabriel Santana Borsilea
- Julio César Minaya
- Jacer Eliazar Mejía Pereyra
have been remanded in preventive detention for 18 months. Three other defendants were issued coercive measures, including:
- House arrest
- Economic guarantees
- Periodic appearances
- Restrictions on travel
Investigation and Cooperation
The investigation, which lasted several months, involved a team of over 20 prosecutors, around 100 police officers, and a dozen agents from special teams. The Institute of Development and Cooperative Credit (Idecoop) and several individuals filed complaints against Coop-Herrera executives, leading to the operation’s launch.
Next Steps
A mandatory review of the measures taken by the judge is scheduled for January 22, 2024, with a control hearing set for June 24, 2024. The Public Prosecutor’s Office has stated that the case is a result of months-long joint investigation work and highlights the importance of cooperation between law enforcement agencies in combating financial crime.
Impact on Financial System
The arrests send a strong message to would-be perpetrators of financial fraud in the Dominican Republic, as authorities continue to crack down on illegal activities that threaten the integrity of the country’s financial system.