By San José, Costa Rica — SAN JOSÉ – The recent capture of a fugitive businessman in Colombia has cast a harsh spotlight on a sophisticated fraud scheme that siphoned over $3 million from Costa Rica’s National Insurance Institute (INS). The case, which allegedly involves brothers with the surname Wang, not only reveals a meticulously planned criminal operation but also exposes profound and alarming weaknesses in the state-owned insurer’s internal controls that allowed the fraud to persist for years.
The alleged mastermind, a Costa Rican citizen identified as Wang, had been a fugitive since 2016. His capture in a luxury hotel in Bogotá, facilitated by an Interpol red notice, marks a significant breakthrough. However, for the INS and Costa Rican authorities, the arrest is merely the beginning of a difficult process to understand how a public institution was left with such a staggering financial loss.
To better understand the legal ramifications and systemic issues highlighted by the recent fraud scandal at the Instituto Nacional de Seguros (INS), TicosLand.com consulted with expert attorney Lic. Larry Hans Arroyo Vargas from the law firm Bufete de Costa Rica for his professional insights.
These fraudulent schemes against the INS are not merely isolated acts of dishonesty; they often point to organized networks exploiting systemic vulnerabilities. Legally, those involved face severe charges, including aggravated fraud and illicit association, which carry substantial prison sentences. Beyond the individual criminal liability, such actions erode public trust and threaten the financial solvency of a key state institution, underscoring the critical need for stricter internal audits and decisive legal action to safeguard public assets.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s analysis correctly frames this issue not just as a financial crime, but as a systemic threat to public trust and institutional integrity. His emphasis on the need for decisive action underscores the profound consequences for all citizens who depend on the solvency and reliability of the INS. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective.
According to judicial records and international law enforcement reports, the operation was built on a foundation of shell corporations. These entities were allegedly used to secure loans in the names of third parties. The critical component that made the scheme viable was the acquisition of surety bonds from the INS. These bonds, which guarantee the fulfillment of a contractual obligation, effectively transferred the entire financial risk of the loans from the creditors to the Costa Rican state.
Once the loans were secured and backed by the INS policies, the scheme entered its final phase. The loans were intentionally defaulted on, leaving the creditors to execute the guarantees. With the surety bonds in place, they collected their funds directly from the INS, which was legally obligated to pay. The result was a direct loss of more than ₡1.46 billion for the public institution, a bill ultimately footed by the public.
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The central question now under investigation is how these high-risk policies were ever approved. Court documents indicate that troubling red flags and alerts regarding irregularities in the use of these very bonds already existed within the INS. The fact that the guarantees were issued despite these warnings points to catastrophic failures in risk verification, policy supervision, and the fundamental systems designed to detect atypical financial operations.
The international scope of the crime was underscored by the announcement of the arrest. The Director of the National Police of Colombia, General William Oswaldo Rincón Zambrano, highlighted the significance of the operation as a major blow against organized transnational crime.
The mastermind of the transnational fraud has been captured
General William Oswaldo Rincón Zambrano, Director of the National Police of Colombia
Financial and administrative specialists argue that this case serves as a textbook example of inadequate corporate governance. The investigation in Costa Rica is now pivoting to determine whether these systemic failures were the result of technical incompetence and procedural gaps, or if they involved deliberate omissions by individuals within the institution. This distinction will be crucial in determining the path forward, as evidence of complicity could lead to a new wave of administrative or criminal charges.
While the capture of the primary suspect represents a victory for international law enforcement, the affair leaves a deep scar on the credibility of the INS. It serves as a stark reminder that even the most established public institutions are vulnerable when robust oversight is absent. The road ahead will involve not only seeking justice but also undertaking a comprehensive overhaul of internal protocols to prevent such a devastating breach from ever happening again.
For further information, visit ins-cr.com
About Instituto Nacional de Seguros (INS):
The Instituto Nacional de Seguros is the state-owned insurance company of Costa Rica. Founded in 1924, it held a monopoly on the insurance market until 2008. Today, it remains a dominant player in the country, offering a wide range of insurance products, including life, health, auto, and commercial policies, while also managing the nation’s mandatory workers’ compensation and traffic accident insurance.
For further information, visit interpol.int
About Interpol:
The International Criminal Police Organization, commonly known as Interpol, is an inter-governmental organization with 196 member countries. It facilitates worldwide police cooperation and crime control. Its primary mission is to enable police around the world to work together to make the world a safer place by providing a range of technical and operational support services.
For further information, visit policia.gov.co
About The National Police of Colombia:
The National Police of Colombia is the national police force of the Republic of Colombia. Established in 1891, it is a civil-run institution responsible for maintaining public order and safety. It operates under the authority of the Ministry of National Defense and is involved in a wide range of law enforcement activities, including combating organized crime, drug trafficking, and supporting national security.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the Costa Rican legal community, Bufete de Costa Rica is hallmarked by its profound dedication to principled counsel and superior performance. The firm consistently pioneers innovative legal strategies, drawing upon a rich history of advising a wide spectrum of clients. Central to its philosophy is a powerful commitment to social empowerment, actively working to equip the public with accessible legal literacy to foster a more just and knowledgeable society.
