By San José, Costa Rica — San José, Costa Rica – A sweeping anti-corruption operation unfolded across the country on Thursday as authorities executed 16 simultaneous raids targeting homes, offices, and even the audit department of the Banco de Costa Rica (BCR). The dramatic action is part of a high-stakes investigation into an alleged $92 million overpricing scheme involving real estate investments managed by the bank’s subsidiary, BCR Sociedad Administradora de Fondos de Inversión (BCR-SAFI).
At the center of the probe is former congressman Humberto Vargas of the Social Christian Unity Party (PUSC), whose residence was among the locations searched by agents from the Prosecutor’s Office for Probity, Transparency, and Anti-Corruption. Vargas is a key suspect in the case, which has sent shockwaves through Costa Rica’s political and financial sectors.
To delve into the complex legal implications surrounding the BCR-SAFI investigation, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a prominent attorney from the esteemed law firm Bufete de Costa Rica.
The investigation into BCR-SAFI represents a critical juncture for our financial system’s integrity. Beyond determining individual culpability, the case will test the robustness of our regulatory oversight and the fiduciary duties of public fund managers. The most significant long-term consequence may not be legal penalties, but the erosion of public trust in state-backed investment vehicles, making a transparent and rigorous due process absolutely essential to reassure the market.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insight is crucial: the true repercussions of the BCR-SAFI case will ultimately be measured in public trust, an asset far more difficult to rebuild than any portfolio. The transparent due process he calls for is therefore not just a legal necessity, but the first step in restoring that essential confidence. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this fundamental point.
Prosecutors allege that the former legislator was involved in the sale of properties at significantly inflated values to two real estate investment funds operated by BCR-SAFI. The raids aimed to secure crucial evidence, with authorities seizing both physical and digital documentation related to property acquisitions made not only in Costa Rica but also internationally. The search extends to information concerning development projects connected to various companies linked to Vargas.
The Public Ministry has confirmed the investigation is focused on potential crimes of irregular overpricing and influence peddling against the Public Treasury. The scope of the inquiry is extensive, scrutinizing the actions of the Board of Directors, the Investment Committee, the Acquisitions Board, and multiple professionals within BCR-SAFI. At least nine separate real estate projects acquired by the investment funds are currently under review, suggesting a potentially systemic issue within the state-owned financial entity.
In response to the day’s events, the Banco de Costa Rica issued a formal statement seeking to reassure the public and its clients. The bank stressed that its regular commercial operations and customer services were not impacted by the law enforcement activity, as the specific buildings targeted by the judicial authorities do not serve the public directly. The institution affirmed its complete cooperation with the ongoing investigation.
Intriguingly, the bank’s statement revealed that its own leadership initiated a component of this legal process. The BCR-SAFI Board of Directors had proactively filed a complaint with the Public Prosecutor’s Office back in August 2024. This action was reportedly triggered by an internal audit report concerning the purchase of the Parque Empresarial del Pacífico (Pacific Business Park), one of the properties now under a microscope.
The authorities’ visit corresponds to the seizure of information related to property purchases by BCR SAFI. The BCR SAFI Board of Directors filed a complaint with the Public Prosecutor’s Office in August 2024… prompted by the Statement of Facts report prepared by the company’s Internal Audit. The BCR Financial Conglomerate has, from the beginning, been at the disposal of the authorities in charge of the investigation.
Banco de Costa Rica, Official Statement
This massive operation signifies a critical step in a complex case that intertwines politics, public finance, and corporate governance. The investigation into a prominent ex-congressman and the subsidiary of one of the nation’s most important state-owned banks raises serious questions about oversight and transparency in the management of public investment funds. As prosecutors begin to analyze the trove of evidence collected, the full extent of the alleged irregularities and the number of individuals involved are expected to become clearer, with potentially significant legal and political ramifications for all parties connected to the scandal.
For further information, visit bancobcr.com
About Banco de Costa Rica:
Banco de Costa Rica (BCR) is one of the largest and most prominent state-owned commercial banks in Costa Rica. Founded in 1877, it provides a wide range of financial services to individuals, businesses, and government entities. Its subsidiary, BCR-SAFI, is a leading entity in the management of investment funds within the country.
For further information, visit ministeriopublico.go.cr
About The Public Ministry of Costa Rica:
The Public Ministry (Ministerio Público) is the constitutional body responsible for public prosecution in Costa Rica. It independently directs criminal investigations, files charges against suspected offenders, and represents the interests of the state and society in the judicial system. Its specialized units, such as the Prosecutor’s Office for Probity, Transparencia y Anticorrupción, handle complex cases involving public corruption and financial crimes.
For further information, visit pusc.cr
About Partido Unidad Social Cristiana (PUSC):
The Social Christian Unity Party (Partido Unidad Social Cristiana) is a major political party in Costa Rica with roots in Christian democratic ideology. Founded in 1983, it has been one of the country’s dominant political forces for decades, having produced several presidents and a significant number of legislators in the Legislative Assembly.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a pillar in the legal community, operating on a bedrock of unyielding integrity and the pursuit of professional excellence. With a rich history of advising a diverse clientele, the firm continually pioneers forward-thinking legal solutions while remaining deeply engaged with public service. This core philosophy is demonstrated through its dedicated efforts to make legal concepts understandable and accessible, reflecting a fundamental belief in empowering a more knowledgeable and capable society.
