Puerto Rican Ponzi Scheme Mastermind Accused of Mismanaging Art Collection Amidst Financial Woes and Bribery Allegations
Lawsuit Alleges Negligent Handling of Valuable Art Collection
A lawsuit filed by Herrera Velutini, the sole shareholder of Puerto Rico-based Bancrédito Holding, accuses administrators tasked with liquidating the bank’s assets of mishandling a valuable art collection. The collection, valued at $22.5 million in 2019, includes works by renowned artists such as Fernando Botero and requires precise temperature and humidity levels to prevent damage.
Allegations of Inadequate Storage and Mismanagement
Herrera Velutini claims that Driven Administrative Services LLC, appointed to administer Bancrédito International Bank and Trust Corporation, has failed to properly preserve the collection, storing it under conditions deemed inadequate. He also alleges that the administrators are shopping around for buyers despite not being necessary to sell off the art to pay creditors.
Financial Woes and Bribery Allegations
The allegations come as Herrera Velutini faces financial woes, including a recent fine of $15 million by the Financial Crimes Enforcement Network (FinCEN) for failing to properly report hundreds of millions of dollars in suspicious transactions tied to crimes such as a Venezuelan Ponzi scheme and drug trafficking. FinCEN accused “Executive A” of using the bank to process these transactions, which was later revealed to be Herrera Velutini.
Alleged Bribery Scandal Across the Atlantic
Herrera Velutini is also at the center of an alleged bribery scandal that has spread across the Atlantic Ocean, with British opposition politicians calling on the Conservative Party to return £500,000 donated by him. The controversy stems from allegations that Herrera Velutini bribed a former governor of Puerto Rico and made illegal payments for political consulting services.
Denials and Ongoing Investigations
A lawyer for Bancrédito Holding denied any wrongdoing, stating that all suspicious transactions cited in the consent order had legitimate business purposes. Meanwhile, Herrera Velutini has maintained his innocence and awaits trial on charges of conspiracy, federal programs bribery, and honest services wire fraud.
Ongoing Investigation into Bancrédito International Bank
The Office of the Commissioner of Financial Institutions is investigating Herrera Velutini’s Bancrédito International Bank, which was ordered into liquidation in January 2023 after failing to enforce anti-money laundering rules. The bank had previously been fined $97,000 for similar violations.
Key Takeaways
- A lawsuit alleges that administrators tasked with liquidating a Puerto Rico-based bank’s assets have mishandled a valuable art collection.
- Herrera Velutini faces financial woes and bribery allegations, including a recent fine of $15 million from FinCEN.
- The alleged bribery scandal has spread across the Atlantic Ocean, with British opposition politicians calling for a return of £500,000 donated by Herrera Velutini.