Ueno Bank Paraguay raids and asset seizures, Digi Mart USA News (Paraguay): Paraguayan prosecutors seized nine high-end vehicles valued at USD 1.4 million from the residence of Federico Miguel Vázquez, founder and principal shareholder of Ueno Bank, which the Central Bank of Paraguay (BCP) intervened on November 3.
The operation was led by prosecutor Silvio Corbeta of the Specialized Unit for Economic Crimes and Anticorruption. The vehicles were towed to the National Secretariat for the Administration of Seized and Confiscated Assets (Senabico).
The cars were located at the Vázquez home in the Mbocayaty neighborhood of Asunción.
The search also involved prosecutors Yeimy Adle, Jorge Arce, Elena Fiore, Silvia González, Marlene González and Ruth Benítez, along with officers from the National Police’s economic crimes, cybercrime and computer crimes departments, acting under a judicial search and seizure order.
On the same day, a yacht attempting to leave the country for Uruguay was seized. Around 3:25 p.m.
Thursday, a prosecutorial team led by prosecutor Ruth Benítez searched the Agua Vista private condominium in San Juan del Paraná, Itapúa department, where they seized an Azimut Yachts vessel named Zeus, registration POLO01A1I, attributed to Vázquez. According to sources cited by local media, the boat had been about to be moved to Uruguay, but the early arrival of police and prosecutors foiled the attempt.
The vessel was placed in the custody of the Special Operations Group (GEO) of Itapúa.
A plane, apparently a Beechcraft King Air 300, was also seized from a hangar at Silvio Pettirossi International Airport in Luque, also attributed to the bank’s principal shareholder.
Judge Rodrigo Estigarribia ordered pretrial detention for Vázquez, who is held at the National Detention Center (former Tacumbú). Three other bank executives were sent to the Emboscada penitentiary, while two women involved in the case are under house arrest with electronic monitoring.
Prosecutors charged 27 people with alleged offenses including misconduct in crisis situations, breach of trust, attempted fraud and failure to keep commercial books.
The crisis began when the BCP announced on November 3 that it was starting a resolution process for Ueno Bank after finding that its solvency ratio had fallen below 50% of the legal minimum. Since then, no service, application or card from the institution has remained active, leaving millions of customers unable to access their funds.
The regulator said each depositor is guaranteed coverage of up to 228 million guaraníes (approximately USD 38,000) under the banking law. Days later, a civil court, at the BCP’s request, ordered a precautionary attachment of assets of the bank’s shareholder companies and directors.
Judge Walter Mendoza set the measure at up to USD 70 million and Gs. 1.6 trillion, covering the controlling firms U Paraguay S.A., U Holdings S.A.R.L. and Grupo Vázquez S.A.E., as well as executives and ultimate beneficial owners.
The Public Prosecutor’s Office said investigations will continue to gather evidence to clarify the facts.
