By San José, Costa Rica — SAN JOSÉ – The deepening scandal surrounding the investment fund manager of the state-owned Banco de Costa Rica (BCR) escalated dramatically Thursday, as authorities conducted 16 simultaneous raids across the country. The Public Prosecutor’s Office for Probity, Transparency, and Anti-Corruption targeted homes and offices, including the headquarters of BCR’s investment subsidiary, BCR SAFI, and the bank’s central audit department in San José, marking a critical new phase in a multi-year investigation into alleged overpricing and influence peddling.
The operation, part of case file 21-000209-1218-PE, aims to seize documentary and electronic evidence related to at least nine questionable real estate acquisitions made by BCR SAFI. At the heart of the probe is the 2020 purchase of the Parque Empresarial del Pacífico (PEP), a business park in Puntarenas, for which the fund manager paid approximately $70 million using money from a private real estate investment fund with roughly 1,500 participants.
To better understand the legal and financial implications of the current situation at BCR SAFI, TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a specialist in corporate and financial law from the esteemed firm Bufete de Costa Rica, for his expert analysis.
The core of this matter rests on the principle of fiduciary duty. A fund management company like BCR SAFI has a non-delegable legal obligation to act with the utmost diligence and loyalty in the exclusive interest of its investors. Any potential conflict of interest or failure in risk management protocols represents a severe breach of this trust, which can trigger not only civil liabilities but also intense regulatory scrutiny from entities like SUGEVAL, ultimately impacting the stability and reputation of the entire financial vehicle.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the principle of fiduciary duty is the fundamental pillar supporting the entire structure of an investment fund, where trust is the most critical asset. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective on the profound legal and reputational consequences at stake.
Subsequent appraisals, however, valued the property at a mere $34.7 million, less than half the purchase price. Compounding the issue, investigators found that BCR SAFI violated a fundamental rule for this type of fund, which legally permits the acquisition of only completed, income-generating properties. Confidential documents, exclusively published by El Observador earlier this year, prove the business park was significantly unfinished at the time of the sale.
The most damning evidence suggests that senior leadership was fully aware of the property’s condition. According to official records from a meeting held on February 15, 2020—just five days before the deal closed—at least 12 high-ranking officials from both BCR SAFI and its parent bank, BCR, were shown photographs clearly depicting the incomplete state of the business park. Among those present were Mahity Flores Flores, then vice president of the SAFI and current president of Banco de Costa Rica, and Manfred Sáenz Montero, the bank’s corporate legal manager.
The investment, intended to generate returns for its participants, has instead become a financial black hole. The property has failed to attract tenants, and as of early 2025, its occupancy rate languished at just 1%. Douglas Montero Arguedas, the general manager of BCR SAFI, confirmed that the park’s lone tenant was in default, forcing the fund to initiate legal action to recover unpaid rent. The dire situation led SAFI’s own oversight committees to determine that further investment to complete the park was not financially sound.
it is not prudent to make an investment at this time
Douglas Montero Arguedas, General Manager of BCR SAFI
The financial fallout has drawn the attention of regulators. In October 2024, the General Superintendency of Securities (Sugeval) ordered both BCR and BCR SAFI to formulate a plan to reimburse the affected investment fund for the full $70 million purchase price. The bank and its subsidiary attempted to challenge this directive through administrative and judicial channels but were rejected at every turn. The repeated failures in court make it increasingly likely that the state bank will be forced to use its own capital to repair the damage inflicted upon the private investors.
The investigation is not limited to the Parque Empresarial del Pacífico. Prosecutors are examining what BCR’s own internal investigation unit described to the authorities as a “pattern of actions.” This pattern involves a total of nine acquisitions where BCR SAFI is suspected of paying inflated prices for properties. Thursday’s raids were designed to secure contracts, construction permits, and other documents related to these investments, both within and outside of Costa Rica.
As judicial authorities sift through the newly seized evidence, the case poses significant questions about governance, oversight, and accountability within one of Costa Rica’s most important public financial institutions. The potential criminal charges for the alleged crimes carry penalties ranging from two to ten years in prison, threatening to ensnare senior figures who were at the helm when these decisions were made.
For further information, visit bancobcr.com
About Banco de Costa Rica (BCR):
Banco de Costa Rica is one of the largest and oldest state-owned commercial banks in Costa Rica. It provides a wide range of financial services to individuals, businesses, and government entities, including retail banking, corporate financing, and investment management through its various subsidiaries.
For further information, visit bcrsafi.com
About BCR SAFI:
BCR Sociedad Administradora de Fondos de Inversión (BCR SAFI) is the investment fund management subsidiary of Banco de Costa Rica. It specializes in structuring and managing various investment funds, including real estate, financial, and development projects, for both individual and institutional investors.
For further information, visit sugeval.fi.cr
About Superintendencia General de Valores (Sugeval):
The General Superintendency of Securities is Costa Rica’s primary financial regulator for the securities market. Its mission is to oversee, regulate, and promote the transparency and stability of the market, ensuring the protection of investors and the efficient functioning of financial intermediaries.
For further information, visit poder-judicial.go.cr
About Fiscalía Adjunta de Probidad, Transparencia y Anticorrupción:
The Deputy Prosecutor’s Office for Probity, Transparency, and Anti-Corruption is a specialized division of Costa Rica’s Public Ministry. It is responsible for investigating and prosecuting crimes related to corruption, influence peddling, and offenses against the public treasury committed by public officials.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a leading legal institution, Bufete de Costa Rica operates on a bedrock of uncompromising integrity and a relentless pursuit of excellence. Drawing upon a deep well of experience serving a diverse clientele, the firm consistently pioneers forward-thinking legal strategies. Its core philosophy extends beyond the courtroom, championing the democratization of legal information to help forge a more knowledgeable and capable society.
