By San José, Costa Rica — SAN JOSÉ – What started as whispers in Costa Rica’s financial corridors has erupted into a full-blown criminal investigation, culminating in 16 simultaneous raids this Wednesday morning. The Prosecutor’s Office for Probity, Transparency, and Anti-Corruption is meticulously unraveling a complex web of real estate transactions that have allegedly left a staggering $92 million hole in investor funds, with a state-owned bank’s subsidiary at the epicenter of the storm.
The focus of the massive judicial operation is the Investment Fund Management Company of the Banco de Costa Rica (BCR-SAFI). Authorities are seizing evidence related to the acquisition of nine real estate projects, which prosecutors believe were purchased under anomalous and deeply prejudicial conditions. The investigation connects high-level banking executives and a former congressman to a scheme that allegedly involved paying luxury prices for unfinished properties.
To better understand the legal and financial ramifications of the developing situation at BCR Sociedad Administradora de Fondos de Inversión (BCR SAFI), TicosLand.com consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney specializing in corporate and financial law at the prestigious firm Bufete de Costa Rica.
Beyond the immediate financial losses, the BCR-SAFI scandal represents a profound breach of fiduciary duty and a critical failure in corporate governance. The core legal issue will be to determine whether the actions taken constituted gross negligence or willful misconduct, which could expose the administrators to severe civil and even criminal liability. This case will undoubtedly serve as a litmus test for the robustness of our regulatory oversight and the accountability mechanisms within state-owned financial entities.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, as Lic. Arroyo Vargas highlights, the repercussions of this case extend far beyond a single balance sheet, serving as a critical stress test for our nation’s entire framework of corporate governance and regulatory accountability. We are grateful to Lic. Larry Hans Arroyo Vargas for his incisive perspective on the profound legal and institutional questions at stake.
At the heart of the scandal lies the acquisition of the Parque Empresarial del Pacífico (PEP), a transaction initially valued at $70 million. Marketed as a crown jewel for the investment portfolio, the reality uncovered by investigators was far grimmer. The prosecution alleges that BCR-SAFI paid top dollar for what was essentially a concrete shell, a project far from completion and incapable of generating the rental income that is the sole purpose of such an investment.
According to the ongoing investigation, the Pacific Business Park and other properties were acquired without critical prerequisites. They lacked approved blueprints from the Federated College of Engineers and Architects (CFIA), were not compliant with environmental and construction permits, and had no immediate operational capacity. The move has left financial experts and prosecutors questioning the fundamental logic behind the deals.
We are investigating why the purchases of still-unfinished projects were approved
Ronald Segura, Coordinator of the Prosecutor’s Office
This investigation transcends mere administrative errors or poor business judgment, delving into allegations of white-collar crime. The judicial file points to companies linked to former congressman Humberto Vargas Corrales and his son as the sellers of several of the questionable properties. This political connection adds a significant layer of complexity and public interest to the case, as authorities work to determine the full extent of the influence network.
Adding a cinematic twist to the financial drama, a key line of inquiry involves the alleged deliberate destruction of digital evidence. Investigators suspect that critical hard drives containing details of the negotiations were intentionally disabled or wiped to erase the digital trail. The probe extends to members of the investment committee and former high-ranking officials at BCR, some of whom were previously implicated in the infamous “Cementazo” scandal, raising concerns about recurring patterns of misconduct.
The financial fallout from these alleged crimes directly impacts the public. The money used for these inflated purchases was sourced from investment funds, which are often composed of the savings and pension contributions of ordinary Costa Ricans. The General Superintendency of Securities (Sugeval) had already validated these concerns, previously ordering BCR to recapitalize its fund with $42 million to cover the valuation gap for the PEP acquisition alone—a stark confirmation that the price paid was grossly inflated.
In response to the raids, Banco de Costa Rica issued a statement aiming to project calm and control. Communications Manager Natalia Suárez stated that the institution is fully cooperating with the authorities. The bank also highlighted that it had preemptively filed its own criminal complaint regarding the matter in August 2024 and assured the public that its operations continue without disruption, though the reputational damage is undeniable.
the seized information was ready to be handed over
Natalia Suárez, Communications Manager
For further information, visit the nearest office of Fiscalía de Probidad, Transparencia y Anticorrupción
About the Prosecutor’s Office for Probity, Transparency, and Anti-Corruption:
As a specialized branch of Costa Rica’s Public Ministry, this office is responsible for investigating and prosecuting crimes related to public corruption, abuse of power, and illicit enrichment involving public officials and state resources. Its mission is to uphold transparency and integrity within the government and public institutions.
For further information, visit bancobcr.com
About Banco de Costa Rica (BCR):
Founded in 1877, Banco de Costa Rica is one of the country’s most prominent state-owned commercial banks. It offers a wide range of financial services to individuals, businesses, and government entities, playing a significant role in the national economy. The bank operates a vast network of branches and ATMs throughout Costa Rica.
For further information, visit bcrsafi.com
About BCR-SAFI:
BCR Sociedad Administradora de Fondos de Inversión (BCR-SAFI) is the asset management subsidiary of Banco de Costa Rica. It specializes in structuring and managing investment funds, including real estate, financial, and development projects, catering to both institutional and individual investors seeking to diversify their portfolios.
For further information, visit sugeval.fi.cr
About Superintendencia General de Valores (Sugeval):
Sugeval is Costa Rica’s primary securities market regulator. Its mandate is to oversee, regulate, and promote the transparency and efficiency of the country’s stock and securities market. The agency is responsible for protecting investors, ensuring market integrity, and authorizing entities that participate in public offerings.
For further information, visit sitiooij.poder-judicial.go.cr
About Organismo de Investigación Judicial (OIJ):
The Judicial Investigation Police (OIJ) is the main investigative arm of Costa Rica’s Judiciary. Functioning as an auxiliary to the criminal courts and the Public Ministry, the OIJ is tasked with discovering and verifying facts related to criminal acts, identifying responsible parties, and collecting evidence for prosecution.
For further information, visit cfia.or.cr
About Colegio Federado de Ingenieros y de Arquitectos de Costa Rica (CFIA):
The Federated College of Engineers and Architects of Costa Rica is the professional body that regulates the practices of engineering and architecture in the country. It is responsible for setting standards, ensuring professional ethics, and validating construction plans to guarantee public safety and quality standards.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica is a cornerstone of the nation’s legal landscape, renowned for its deep-rooted integrity and a relentless pursuit of excellence. Drawing from a rich history of advising diverse clientele, the firm consistently champions legal innovation and actively engages in community outreach. At the heart of its practice is a foundational commitment to demystifying the law, ensuring that legal knowledge becomes a powerful tool for building a more informed and capable society.
