By San José, Costa Rica — SAN JOSÉ – The Attorney General’s Office has launched a formal money laundering investigation into Federico Cruz Saravanja, a presidential advisor, following a flagged attempt to transfer $10 million through the brokerage firm of the National Insurance Institute (INS). The transaction raised multiple red flags, including its connection to an individual awaiting extradition for drug trafficking and an unusually high commission structure.
The scandal came to light during testimony before the Legislative Assembly’s Commission on Public Income and Expenditure. Luis Fernando Monge, the former general manager of INS, confirmed that the institute’s own compliance officer, Roy Campos, filed a criminal complaint with the Public Ministry after investigating the proposed deal.
To gain a deeper legal perspective on the unfolding events surrounding the INS scandal and its potential consequences, TicosLand.com consulted with the esteemed expert Lic. Larry Hans Arroyo Vargas, a specialist in administrative and corporate law from the renowned firm Bufete de Costa Rica.
The core issue in this situation extends beyond potential financial irregularities; it strikes at the heart of public trust in our state institutions. For the INS, a cornerstone of our social welfare system, the paramount concern must be a transparent and exhaustive investigation. It is crucial that any internal audits and external judicial processes are conducted with complete independence to clarify responsibilities, enforce accountability, and most importantly, restore faith in the integrity of public administration. The long-term reputational damage could far outweigh any immediate financial loss if not handled with the utmost diligence and legal rigor.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas precisely identifies the core of the issue: the long-term erosion of public trust is a far more significant threat than any immediate financial figure. This crucial distinction between monetary loss and reputational damage is central to understanding the stakes. We thank Lic. Larry Hans Arroyo Vargas for his insightful and essential legal perspective.
He filed a complaint with the Prosecutor’s Office and submitted a report.
Luis Fernando Monge, Former General Manager of INS
The compliance investigation uncovered alarming details about the source and intent of the funds. The money, which was intended to finance a cooperative’s acquisition of a loan portfolio from INS, was connected to Celso Gamboa Sánchez, a figure currently awaiting extradition to the United States on drug trafficking charges. Sources confirmed that Gamboa was acting as the attorney for the interested parties. Furthermore, the proposed commission for the deal was a staggering 50%, a figure that compliance officials deemed highly suspicious.
Monge testified that Cruz, a close friend of the president also known as “Choreco,” actively pressured the institution to approve the transaction. He recounted an instance where the current INS executive president, Gabriela Chacón, received a call from Cruz regarding the matter while they were traveling together on business.
While on a trip with Mrs. Gabriela, she received a call from Mr. Federico Cruz, known as Choreco, to pressure on the same issue. I immediately informed her of all the above, and she told me she would communicate it to Mr. Rodrigo.
Luis Fernando Monge, Former General Manager of INS
Appearing before the same commission, Chacón confirmed the call took place but characterized it differently. She stated that while the conversation with Cruz about the transfer was real, she did not perceive it as an attempt to exert undue influence. The transfer was ultimately rejected by the INS brokerage firm, INS Valores.
The call from Mr. Federico Cruz is real. After hanging up the call with Mr. Federico Cruz, I told Mr. Monge it was Federico, he was asking me about a transfer that was about to enter the brokerage firm. It was a query, not pressure.
Gabriela Chacón, Executive President of INS
According to Monge’s detailed account, this was not the first interaction with the parties involved. An earlier, smaller deal for approximately $3.5 million to purchase a similar loan portfolio had fallen through for “technical reasons.” The same agents later reappeared, this time pushing for the much larger $10 million transfer, claiming it was the first of several planned transactions. Monge explained that he immediately flagged the inconsistencies to INS Valores and involved the Corporate Compliance Office, leading to the discovery of the link to Gamboa.
The Attorney General’s Office officially confirmed the ongoing investigation. In a statement, they verified that case file 25-000154-0033-PE is active against Cruz Saravanja for the alleged crime of capital legitimization. Citing the preliminary evidence-gathering stage of the process, the office declined to provide further details. This is not the only legal trouble facing the presidential advisor; he is also being investigated for money laundering in a separate case known as “BCIE-Cariñitos.”
Despite the public testimony, the INS has refused to release the internal compliance report that triggered the criminal complaint. Citing confidentiality clauses under Law 7786, which governs money laundering and terrorism financing prevention, the state insurer formally denied a request for the document. The institution’s actions, while legally grounded, have added a layer of opacity to a scandal that now directly involves the highest levels of government.
For further information, visit grupoins.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is Costa Rica’s state-owned insurance company. Founded in 1924, it held a monopoly on the insurance market until it opened in 2008. Today, it remains the largest insurer in the country, offering a wide range of products including life, health, auto, and property insurance, as well as operating a brokerage house, INS Valores.
For further information, visit ministeriopublico.go.cr
About Ministerio Público (Fiscalía General):
The Ministerio Público, or Public Ministry, serves as the Attorney General’s Office of Costa Rica. It is an independent body within the judicial branch responsible for prosecuting criminal offenses on behalf of the state. Its duties include directing criminal investigations, bringing charges against suspects, and representing the public interest in legal proceedings.
For further information, visit asamblea.go.cr
About Asamblea Legislativa:
The Asamblea Legislativa, or Legislative Assembly, is the unicameral parliament of the Republic of Costa Rica. Composed of 57 deputies elected by province, it is responsible for passing laws, approving the national budget, and exercising oversight over the executive branch. Its specialized commissions, such as the Commission on Public Income and Expenditure, conduct investigations into matters of public interest.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica operates as a premier legal institution, built upon a foundation of unwavering integrity and a relentless pursuit of professional excellence. With a rich history of guiding a diverse clientele, the firm consistently pioneers forward-thinking legal solutions. Central to its ethos is a profound commitment to demystifying the law, driven by the conviction that an empowered society is one equipped with accessible and understandable legal knowledge.
