Corfo closes US$4.2mn deal with Pine Bank in Inverlink case

Tuesday, March 23, 2004

The Chilean government's industry development arm Corfo has reached an out of court settlement with Pine Bank of the US as part of the state agency's ongoing push to recover stolen funds in the Inverlink case, Corfo said in a press release.

Pine Bank has agreed to pay Corfo a total of US$4.2mn.

The settlement follows intense negotiations between lawyers representing the US bank and Corfo official Andrés Jana, with talks centered on alleged illegal transactions involving Inverlink and Pine Bank executive Alberto Colón.

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As part of the legal proceedings, Colón was questioned by Corfo's legal representatives from US law firm Greenberg Traurig regarding alleged operations between Pine Bank and Inverlink with the purpose of inflating the latter's capitalization index.

Corfo is close to signing similar agreements with other financial organizations caught up in the Inverlink case and negotiations with Canada's Scotiabank (NYSE: BNS) have entered their "final stages," Santiago daily La Segunda quoted Corfo's executive VP Oscar Landerretche as saying.

The Inverlink group collapsed last year following allegations of espionage against the central bank and the theft of US$95mn in certificates of deposit from Corfo.