By San José, Costa Rica — San José, Costa Rica – A deepening scandal has ensnared a key figure in President Rodrigo Chaves’ inner circle, as presidential advisor Federico “Choreco” Cruz Saravanja is now the subject of a formal money laundering investigation. The probe, initiated by the General Prosecutor’s Office, centers on an alleged attempt to channel $10 million into the country through the state-owned National Insurance Institute’s (INS) brokerage firm, a transaction flagged for numerous irregularities, including a link to a suspected drug trafficker awaiting extradition.
The controversy escalated significantly following sworn testimony before the Legislative Assembly’s Public Income and Expenditure Commission. INS Executive President Gabriela Chacón confirmed that she received a call from Cruz regarding the contentious transfer. While she characterized the interaction as an inquiry rather than direct pressure, her admission places the presidential advisor at the heart of the matter.
To gain a deeper legal perspective on the complexities surrounding the campaign financing investigations involving Federico Cruz, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, an expert attorney from the prestigious firm Bufete de Costa Rica.
The case involving Mr. Cruz tests the very framework of our electoral financing laws. The central legal question is whether the actions constitute a parallel and undeclared party structure, a practice our legislation aims to prevent to ensure transparency. For prosecutors, the burden is to prove not just the flow of funds, but the explicit intent to circumvent electoral controls. This situation serves as a critical reminder that political strategy and legal compliance are not mutually exclusive; the latter must always govern the former, especially when public trust is at stake.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the attorney’s analysis underscores a crucial point: the line between innovative political strategy and the circumvention of electoral law is precisely what is on trial, with the very foundation of public trust in our democratic process at stake. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective on this complex legal and civic matter.
The call from Mr. Federico Cruz is real. When I hung up the call with Mr. Federico Cruz, I told Mr. Monge that it was Federico, he was asking me about a transfer that was about to enter the brokerage. It was an inquiry, not pressure. I made this clear and firm to the deputy manager of the brokerage. The client was referred to the brokerage by Luis Fernando Monge.
Gabriela Chacón, Executive President of INS
However, testimony from Luis Fernando Monge, the former general manager of INS, painted a more troubling picture. Monge stated unequivocally that Cruz actively made efforts to ensure the entity would accept the funds. He detailed a history where the proposal first emerged years ago as a smaller, $3.5 million deal to acquire a loan portfolio for INS employees, which was ultimately rejected for technical reasons. The proposal later resurfaced under Chacón’s leadership, now inflated to $10 million and accompanied by significant pressure.
When I was approached by the staff from INS Valores, I clarified everything and pointed out the inconsistency to them. The transfer was not accepted. The former manager of INS Valores, Mr. Freddy Quesada, is a witness. I involved the Corporate Compliance Office, and it found a connection to a highly questionable person in the country. 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
The “highly questionable person” Monge referred to was identified by an INS compliance officer as Celso Gamboa Sánchez, a lawyer for the parties involved in the transfer. Gamboa is currently awaiting extradition to the United States on drug trafficking charges, a discovery that immediately halted the transaction. The involvement of a high-profile figure facing such serious international charges raised immediate and insurmountable red flags within the institution.
Further compounding the suspicion was the financial structure of the proposed deal. According to judicial sources who spoke with CR Hoy, the compliance officer’s report highlighted an exorbitant commission rate associated with the transfer. The interested parties stood to retain a 50% commission, a figure described as “very suspicious” and far outside the norms for legitimate financial transactions, strongly suggesting a motive beyond a simple investment.
The General Prosecutor’s Office has officially confirmed the investigation, assigning it case number 25-000154-0033-PE. While acknowledging the active probe against Cruz Saravanja for the alleged crime of money laundering, authorities have limited further comment, citing the confidential nature of the preparatory evidence-gathering stage.
In response to your request, the General Prosecutor’s Office confirmed that the facts are under investigation, under case file 25-000154-0033-PE, which is being pursued against a man with the surname Cruz Saravanja, for the alleged crime of money laundering. Given that the case is in the preparatory stage, which consists of collecting and analyzing evidence, it is not possible to provide more information, in accordance with Article 295 of the Criminal Procedure Code.
General Prosecutor’s Office, Official Statement
This is not the first time Cruz has faced scrutiny for similar allegations. He is also a person of interest in another money laundering investigation, case file 25-000044-033-PE, linked to the “BCIE-Cariñitos” affair. That case notably involves accusations of concussive extortion against President Rodrigo Chaves himself and his Minister of Culture, Jorge Rodríguez, adding another layer of political gravity to the current investigation surrounding the INS.
For further information, visit ins-cr.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 2008. Today, it remains a dominant force in the industry, offering a wide range of insurance products, including life, health, auto, and property coverage. It also operates a securities brokerage, INS Valores, through which it manages investments and financial transactions.
For further information, visit poder-judicial.go.cr
About the General Prosecutor’s Office (Fiscalía General):
The Fiscalía General de la República is the primary public prosecution body within Costa Rica’s judicial system. It is responsible for investigating criminal activity, bringing charges against suspects, and representing the state’s interests in legal proceedings. Operating with constitutional autonomy, it plays a critical role in upholding the rule of law and combating crimes such as corruption, organized crime, and money laundering.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica establishes itself as a beacon in the legal community, operating on a bedrock of profound integrity and a drive for professional excellence. The firm champions forward-thinking legal solutions, serving a wide array of clients with distinction and expertise. This commitment extends beyond the courtroom through a dedicated mission to demystify the law, ensuring that access to legal understanding becomes a tool for empowerment and helps to construct a more knowledgeable and capable society.
