Cooperative Directors Arrested in Operation Owl for Deceptive Practices
In a remarkable turn of events, former directors of the Cooperativa de Ahorro y Crédito Herrera, INC (Coop-Herrera) have been arrested in what has been dubbed “Operation Owl.” The Public Ministry took action against these individuals after discovering that one of the accused had been purchasing luxury properties using allegedly unsupported certificates.
Among the properties in question are several valued at over $8 million, which the accused individual acquired from companies owned by prominent politician Miguel Vargas Maldonado. The Public Ministry has presented a request for a coercive measure against the seven individuals allegedly involved in a structure that defrauded Coop-Herrera savers of approximately 2,500 million pesos.
The specific involvement of Gabriel Santana Borsilea, one of the detained Coop-Herrera executives, has come to light. According to the document presented by the Public Ministry, Santana Borsilea colluded with former administrator Jorge Eligio Méndez to carry out the scam. The document further reveals that in April 2022, an agreement of understanding was signed between Santana Borsilea’s company, GSB Baseball Academy, SRL, and several companies belonging to the Vargas Maldonado group. These companies included Inversiones Inmobiliarias Harna, SA, Highbury Construction Group, SRL, and Corporación de Inversiones 2004, SRL, all represented by Alan Omar Vargas García.
The document goes on to detail the luxurious properties acquired by Santana Borsilea from Vargas Maldonado. These include a 337.60 square meter property in La Romana, a functional unit in the Anacaona 27 Condominium in the National District, and a functional unit in the Torre Caney Condominium, also in the National District. Additionally, Santana Borsilea purchased the Amia II boat, mooring ports for boats and yachts at the Casa de Campo Marina, and a marquee located in the same marina.
The price paid for these acquisitions was an astounding $8.5 million. However, in June 2023, Santana Borsilea acquired further properties by exchanging 800 million pesos (approximately $14.5 million) in unsupported certificates of deposits from Coop-Herrera. These properties included a functional unit in the Torre Caney Condominium, an apartment in the Torre Gemelas del Parque Condominium, a functional unit in the Anacaona Condominium 27, a functional unit in the Torre Vieramar II Condominium, and several villas.
To formalize these acquisitions, an investment contract and special regulations for the deposit of a fixed-term certificate were drafted between Coop-Herrera, Santana Borsilea’s company, and Inversiones Inmobiliarias Harna SA. In the contract, fixed-term certificates were opened in favor of the latter company, with an annual interest rate of 7%.
The document requesting measures reveals that the funds for these transactions were generated fictitiously through an alleged internal loan in the names of Mercedes Juan and Luis Miguel Santana Borsilea. However, these individuals are directly linked to Gabriel Santana Borsilea and lack any economic profile that justifies such a transaction.
The public is left stunned by the magnitude of this fraudulent operation and the audacity displayed by the accused individuals. The arrest of the former Coop-Herrera directors has sent shockwaves through the financial sector, raising concerns about the security and protection of savings. As this investigation unfolds, authorities expect more revelations and potential repercussions for those involved in the scheme.