THECASE/ Documents and evidence

 

 

There is abundant evidence demonstrating what really happened to Filanbanco. Reports, expert opinions, balance sheets and audits reveal Filanbanco’s solvency as it was turned over to the AGD and its subsequent collapse while managed by the Government.

On this page you will find the key case documents, many of them prepared by independent entities. The documents reveal the true victims of this abuse and those who have benefited personally and financially from this political-judicial operation.

To facilitate in-depth consultations, the material is arranged thematically, making it easier to find the arbitrary principle accusations against the private administrators of Filanbanco.
Rulings, judgments and sentences



1. Armando Bermeo Sentence

It has been determined that such falsehoods and violations of the law were the antecedents for the creation of Filanbanco’s financial and liquidity crisis because they constitute minor crimes for the commission of banking embezzlement. With these antecedents the signing Judge, President of the SCJ, issued the ruling calling for a plenary trial against the accused for the crime of banking embezzlement.




2. Moyano Call to Trial

The ruling calling for a plenary trial issued by the former President of the Supreme Court of Justice, Dr. Armando Bermeo Castillo is confirmed.




3. Ruling Alternate Justices

…Embracing in part the prosecutorial opinion issued by Dr. Mariana Yepez de Velasco, even though the crime of financial embezzlement was not enacted as a crime on the date of the alleged commission of the crime… Consequently, then initiation of the plenary stage against the accused is confirmed…, for the crimes they are accused of by the Prosecutorial Minister General of the State Dr. Marian Yepez de Velasco in her accusatory prosecutorial opinion and that are enacted and penalized by articles 128 letter a) and 131 letters a), b) and d) of the General Law of Institutions of the Financial System.




4. Non-existent Ruling

Because it lacked judicial efficacy, the Chamber of the occasional Alternate Judges declared the ruling issued by the Chamber of Permanent Judges as non-existent as seen on pages 289 to 307; and consequently, in the ruling of the initiation of the plenary stage issued by the Principle Chamber comprised of doctors Hernán Ulloa Parada, Luis Moyano Alarcón and Milton Peñarreta Alvarez, President and National Justices, respectively dated 05/12/2009 at 10 am it is held as completely valid.




5. Merino Sentence

I find Roberto and William Isaias Dassum, Juan Franco Porras, Gastón García González, Leonardo Navas Banchón and Antonio Arenas C. to be guilty and to be the responsible authors of the crime of embezzlement.  They are convicted and sentenced to eight years in prison without mitigation.




6. Iniguez Sentence

… Declares the appeal filed by Roberto Isaías Dassum, William Isaías Dassum, Juan Franco Porras, Leonardo Navas Banchón, Antonio Arenas Contreras as groundless…. By virtue declares the authors responsible for the crime of embezzlement and penalized in article 257 of the Criminal Code in agreement with article 42 ibid the accused Roberto Isaías Dassum, William Isaías Dassum, Juan Franco Porras, Leonardo Navas Banchón, Antonio Arenas Contreras sentencing them to eight years imprisonment…




7. Cause Sentence 414B-2010 Filanbanco

The appeal applying the principle of iura novit curie was declared inadmissible, official cause of the sentence issued by the Appellate Tribunal of the Criminal Specialized Chamber of the NCJ on 03/12/2014 at 3pm declared them responsible authors of the crime of misappropriation.


Letters sento to President Correa and other Officials



1. Letters of the attorney-in-fact of the Isaias Group to President Rafael Correa Delgado

• Letter dated October 9, 2008.
A request to update the Deloitte & Touché report in order to determine the true amount of the risk assets of third parties and other assets that to date have pending payments by the debtors so that Sirs Roberto and William Isaias Dassum can immediately proceed to purchase them.

• Letter dated November 17, 2008
A request is made to comply with the Resolution by the Banking Board that states “authorize the hiring of an external audit with international partners to review the subsequent facts of the Deloitte & Touché report…” the only manner in which to determine whether or not there were losses till 12/02/98.

• Letter dated February 19, 2009
It is reported that very little progress has been made towards a definitive solution of the Isaias case; new obstacles appear all the time; the President of the Republic is asked to intervene in order to speed up the process and eliminate the obstacles in order to finalize this negotiation which would be quite beneficial for the confiscated businesses, its employees, their families and the Ecuadorian state.

• Letter dated May 9, 2009
Ten months have passed since the General Manager of the AGD proceeded to confiscate assets and businesses of the former shareholders of Filanbanco and unfortunately, some third parties as well, based on the 2001 Deloitte & Touché report. The Banking Board ordered the update of the amount of Filanbanco’s assets as of 12/02/98 and we have promised to buy said assets, in the absence of any legal obligation to do so, because beyond the economics of it all, we aspire to live in peace after ten years of persecution.

• Letter of September 29, 2009
The Superintendent of Banks has taken 14 months to present information that you have defined as nonsense; that information is unknown. We have sent the President an update of the Deloitte & Touché report that we conducted. Moreover, worst case scenario, the Isaias family assumes the negligence, irresponsibility and even the corruption of the State administration of Filanbanco. The updated balance of the D&T report does not exceed $284.3 million dollars. In reality, it should be $54.4 million USD. Therefore, the sum of $400 million indicated by the SIB only obeys the intention of that institution to conceal their decade long sins and cause harm to the Isaias.

• Letter dated October 19, 2009
In various interviews the Superintendent of Banks states that the interests sought to be collected from the Isaias family should be the same that were agreed upon by the defaulting debtors with the bank. The shareholders of a bank do not respond for unpaid assets of the institution; the law states that the shareholders respond exclusively for the liabilities of the bank, specifically for the deposits by the public.

• Letter dated January 8, 2010
Representing the businesses confiscated by the AGD and Roberto Isaias Dassum; the Isaias family would like to reach an agreement with its government to stop the confiscations of their businesses, to prevent further loss of value and to put an end to the existing judicial proceedings in Ecuador and the United States. After various problems the Liquidator of Filanbanco was held responsible for the update. The update contained blank spaces, inaccuracies and imprecision that we covered in this communication.

• Letter dated February 9, 2010
Three meetings were held after the confiscations, two in 2008 and another in 2009, since then we have never been heard. We have asked to meet with the President and his government decision makers on this case so that we can present our arguments regarding the update of the D&T report since he has been erroneously informed on this topic.

• Letter dated February 10. 2010
Regarding the assets confiscated from the Isaias family that are now the responsibility of the Trust Fund CFN-AGD No More Impunity, the President of the Republic is informed of the inadequate and worrisome management by the people managing these assets so that they can be investigated and penalized accordingly. Some cases are detailed here.

2. Letters from the local representative of the Isaias Brothers to President Rafael Correa Delgado

• Letter dated June 15, 2009
A little less than a year has passed since the order was given to confiscate the assets of the Isaias family and others for Filanbanco’s unpaid assets and not deposits as called for by law. All the problems related to this issue are pointed out to the President; it is impossible to speak to anyone; in spite of his instructions the businesses deteriorate. The conduct of the AGD violates ethics and morality, in addition to being illegal and arbitrary.

• Letter dated October 15, 2010
Mister President history is repeating itself; Roberto Isaias Dassum handed Filanbanco over to the Ecuadorian State (AGD) on December 2, 1998. It was a solvent bank experiencing liquidity difficulties due to the systematic crisis of the country at the time. The State administered it until June 2001 and bankrupted it; at the end we have been held accountable for the robbery and mismanagement at the hands of the governmental administration.

3. Letters from the defense attorneys of Roberto y William Isaías to the President of the National Assembly.

• A law in favor of corruption?
We should all be equal before the law. The exceptions and privileges are hateful and normally generate injustice and corruption. The project for the Code of Planning and Public Finance contains Transitional Dispositions ripe with exceptions and privileges favoring an administration that lacks transparency and holds the businesses confiscated from the Isaias family in 2008.
• Various points are mentioned. These dispositions create the “Trust Fund AGD-CFN Total impunity”; a private monster with state, executive and judicial powers; furthermore, it is excluded from complying with the laws of public contracting and transparency and that will administer and sell confiscated businesses without any kind of control or supervision.
• President sends the Assembly a letter giving his cousin carte blanc while the latter sells Servientrega The economist Pedro Delgado, cousin of Rafael Correa and President of the Trust Fund, who does not render any accountability in the administration of the confiscated assets pertaining to the Isaias family, announced that he had sold 50% of the shares of Servientrega valued at $3.4 million USD to two foreign companies; the buyers had been warned months ago that they would be sued; this first sale was done the day after the President had sent an urgent project of economic interest to the Assembly that contained the Code for Planning and Public Finance where he has included “contraband” transitional dispositions to continue the political persecution of the Isaias family and to promote the impunity of the administration of the companies.


Press releases



1. Communication on the condemnatory sentence of March 13, 2014

• Why did the Government convict the Isaias brothers?
Had they not been convicted it would have had to return the television stations, TC Television, Gamavision and CN3 and render accountability for more than a billion dollars in squandered businesses and assets.

2. Open letter to Dr. Gustavo Jaklh, President of the Judicature Council regarding due process violations in the Isaias case

The laws and Constitution of Ecuador grant express authority to the Judicature Council to suspend judges when a presumption exists that an illicit act has occurred and to penalize them if they commit inexcusable errors when applying the law. We have requested your intervention in the complaints and communications delivered to your office.

3. Public communication for the 5 year anniversary of the confiscation of the assets, businesses and media outlets pertaining to the brothers Roberto and William Isaias Dassum

The confiscation is part of an unjust confabulation that has squandered more than $800 million USD that lacks transparency and has no accountability as called for by law and the Constitution. Five years ago, a group of former government officials decreed a “banking holiday”, they fabricated a perverse confiscation of the assets pertaining to the Isaias and others claiming the existence of depositors harmed by our administration of Filanbanco. After this illegal confiscatory act they sought the protection of the National Constituent Assembly.

4. Explanatory press release about the Isaias Case by Roberto Isáias Dassum.

We have not hurt any depositor. In the face of a government campaign, intending to justify the systematic abuse committed against us and certain press publications that are far from the truth, I must reiterate we have not hurt any depositor of Filanbanco during our management that concluded on 12/02/98 the day we handed over a fully functioning bank to the State.

5. Statements by Isaias Brothers about the court ruling set by Judge Wilson Merino.

“This ruling is another example of the political persecution by the government of Rafael Correa, of the absence of justice and the lack of due process in Ecuador… Furthermore, the acts by Judge Merino – who also convicted the businessmen and journalists of the newspaper El Universo confirms that the Ecuadorian judicial system is just another branch run by President Correa…” “We are politically persecuted and the sentence is destined to consolidate the confiscation of the television channels and important communication mediums... “


Proof of the correct use of loans from Central Bank delivered to Private Filanbanco



1. Report on the loan granted by the central bank of Ecuador to Filanbanco s.a. to recourse of articles 24 and 26 of the monetary regime law and state bank from September 14 to December 10, 1998.

The accounting firm in its final report on the administration of privately held Filanbanco S.A. indicates that it has monitored the correct use of the recourses given by the CBE to Filanbanco S.A. (Page 6).

2. Report by the accounting firm of Price Waterhouse & Coopers agreed upon review procedures with the central bank of Ecuador applied to Filanbanco s.a. in February 1999.

The report dated February 1999 by the accounting firm Price Waterhouse & Coopers chosen by the Central Bank of Ecuador when Filanbanco was subjected to a Stabilization Program and it was asked to monitor the funds of the loans granted by the CBE to Filanbanco S.A...  THE FIRM MAKES NO MENTION OF ANY IRREGULARITY IN THE USE OF FUNDS.

3. Official document 146-2000-01807 Central Bank of Ecuador June 2000

Report presented by the CBE before the Attorney General of the Nation that point out the CBE’s control over the disbursements and the use of the liquidity loans given to Filanbanco. The report reflects the proper use of the funds meticulously detailing the daily balance of the operations. (Page 8)

4.- Expert Report ordered by the President of the Supreme Court of Justice

The report ordered by the President of the Supreme Court of Justice and prepared by experts Fernando Castillo and Elvira Pino concludes that Filanbanco S.A. properly used the recourses delivered by the CBE for the period between September 14 and December 2, 1998. (Page 21 number 2)

5. Official Document 2000-443-GG-Filanbanco December 5, 2000

Document written by Engineer Antonio Bejarano, General Manager of Filanbanco, sent to the Secretary of the Supreme Court of Justice that states the public withdraws made between September 14 and December 2, 1998 were greater than the loans greater by the CBE for that time period. (Page 1 letter D)


Proof that Filanbanco’s portfolio did not increase due to new operations



6. Official document w/o number October 15, 1998, manager of Filanbanco Juan Franco Esq. addressed to Mister Luis Jacome president of the board of the central bank of Ecuador.

In this letter, the former General Manager of Filanbanco invites reflection on some particularities of the application of Resolution 001. (Page 1)

7. No. 010 minutes of the board meeting of the Central Bank of Ecuador held on November 5, 1998

During this meeting the Board of the CBE approves the modification of the regulation 001-98 and expedites Regulation 008-98 through which the increase of credit card balances, payment of contingencies by the original debtor and financial operations specific to the CFN or international lines of credit are decriminalized

8. Official Document 2000-443-GG-Filanbanco December 5, 2000

Document written by Engineer Antonio Bejarano, General Manager of Filanbanco, sent to the Secretary of the Supreme Court of Justice that Filanbanco granted new operations with the cash disbursements, originated by cardholder consumption, support for certificates of deposit (back to back) and operations for small amounts totaling 19.195 million sucres (approximately 2.8 million USD) corresponding primarily to operations of consumption granted for the psychological effect that the crisis had on the market at that time. (Page 3)

9. Official Document 146-2000-01807 Central Bank of Ecuador June 12, 2000

Report presented by the CBE before the Attorney General of the Nation wherein its conclusion highlights that it can be inferred from the information provided by Filanbanco that the liquidity necessities that said institution had during that period to honor and pay permitted operations were greater than the amount that was granted by the CBE which is why it needed to use other sources of funds to cover the difference of the permissible operations. (Page 11)

10. Expert report ordered by the president of the supreme court of justice

The report ordered by the President of the Supreme Court of Justice and prepared by experts Fernando Castillo and Elvira Pino indicates that the follow up procedure of proof and verification conducted regarding the analysis mechanism of the movement of the portfolio account of Filanbanco S.A. We conclude for the time analyzed that said account decreased approximately 24 million USD, decrease created by portfolio recuperation, as was proven by analyzing the balances of said financial institution. (Page 21 Conclusion 7)


Proof that Filanbanco did not set up new operations to the Isaias Group's related accounts during the period when it was receiving credit from Banco Central



11. General law of the institutions of the financial system, articles 71, 72,, 73, 74 and 75

Corresponds to the legal antecedent of the affiliated operations, the same which were permitted by law, in the specific laws that regulated the granting of credit

12. FORM 250-B NOVEMBER 30, 1998 TILL APRIL 30, 1999

This form was sent monthly to the Superintendent of Banks to inform the controlling entity as to affiliated loans. It was obligatory to report affiliated operations, guarantees and amounts as well as the correlation with the legally permissible limits at that time for this type of loan. This document shows that private Filanbanco did not violate any of the current laws which is why they were never sanctioned.

13. Report by the accounting firm Price Waterhouse & Coopers agreed upon review procedures with the CBE applied to Filanbanco S.A. February 1999

Report by the company Price Waterhouse & Coopers which proves that Filanbanco never granted any affiliated firms new loans as had been falsely claimed and therefore more importantly confirmed that disbursements were not made, but rather all ready existing affiliate operations were renewed. (Page 13)

14. Official document 2000-443-gg Filanbanco December 5, 2000

Document written by Engineer Antonio Bejarano, General Manager of Filanbanco, addressed to Secretary of the Supreme Court of Justice where there is a summary of credit operations made by Filanbanco S.A. between September 22 and November 4, 1998 without any report concerning increased balance due to affiliated operations (Page 2 and 3 Number 2)

15. Report on the loan granted to Filanbanco S.A. by the Central Bank of Ecuador of recourse of articles 24 and 26 of the law of monetary regime and bank of the state

The accounting firm in its final report regarding the private administration of Filanbanco S.A. does not reveal the granting of any loan operation to affiliated companies (Page 6)

16. Expert report ordered by the president of the supreme court of justice

The report ordered by the President of the Supreme Court of Justice and prepared by the experts Fernando Castillo and Elvira Pino indicates in the movement analysis of the Portfolio Account of Filanbanco S.A. that for the given time period the account decreased without the granting of loans to affiliated companies. (Page 21 Number 7)

17. ARTICLE 73 MODIFIED BY LAW 99-26 on May 13, 1999

The law is modified and expressly prohibits financial institutions from conducting operations with natural or legal persons linked directly or indirectly with the administration or proprietorship of an institution, its subsidiaries or its controlling entity. This occurs five months after the private shareholders of Filanbanco S.A. handed the bank over to the State.

18. Report by the independent auditors Hansen-Holm & Co.

The opinion of the auditing firm of Hansom-Holm & CO. dated March 12, 1999 on the balance sheets of December 31, 1997 and December 31, 1998 regarding TRANSACTIONS WITH RELATED PARTIES does not reveal an excess of these loans nor were there any fines for that concept either. (Page 28 Note 22)

19. Filanbanco S.A. restructuring program – Resolution 98.085

The Restructuring Program establishes, among other things, that the new administrators must present within 30 days a timeline for the recuperation of the portfolio linked to the former shareholders of Filanbanco S.A. In the so called Program there are no prohibitions or limitations on this type of operations. (Page 1)

20. Report from engineer Daniel Canizares general manager of Filanbanco to the Banking Board Feb. 8, 1999

It is mentioned in the report that in compliance to that stipulated in Resolution No. JB98085 of December 2, 1998 regarding the Restructuring Program they proceeded to present the Board of the entity the timeline of the loan payments linked to the former shareholders. (Page 22 Number IX)

21. Minutes of the Filanbanco s.a. board meeting January 21, 1999

In these minutes of Filanbano’s Board, publicly administered, in compliance with that stated in the Restructuring Program, they approve the refinancing and payment plan of the affiliated loans with the former shareholders of Filanbanco. (Pages 4, 5, and 6)


Various Investments / Multi-investment Trust



22. Daily balance sheets of Filanbanco trust

The Filanbanco Trust balance sheets from September 14 through December 1, 1998 indicate that the Account 13 Various Investments did not increase, but on the contrary decreased.

23. Evolution of the balance of Filanbanco Trust & Banking Corp.

The chart demonstrates the evolution of Various Investments during the period between September 14 and December 2, 1998.

24. Statistical summary chart of investments.

This statistical investment chart shows the diminution of the amount in account 13 Various Investments.


Trusts: Silver and Enerco



25. Resolution No. SB-998-0774

On June 15, 1998 through Resolution SB-98-0774 the Superintendent of Banks approves the issuance of convertible obligations in shares supported by general guarantee of Filanbanco S.A.

26. Resolution NO. SB-98-0800 on June 26, 1998

Resolution No. SB-98-0800 signed by Jose Morillo, Superintendent of Banks, resolved to approve the reform of Filanbanco’s issuance of convertible obligations authorized by Resolution SB-98-0774 on June 15, 1998.

27. Trust fund contracts

27.1- On June 30, 1998, the contract SALE AND PURCHASE OF PORTFOLIO TO TERM between Filanbanco S.A. and Enerco Trust Fund “Documentation Recuperation” was signed Filanbanco makes the real sale and perpetual alienation in favor of Enerco Trust Fund the commercial portfolio along with its corresponding personal and or real guarantees that are detailed in the Attachments, for an approximate value of 150 billion sucres.



27.2- On June 30, 1998, the contract SALE AND PURCHASE OF PORTFOLIO TO TERM between Filanbanco S.A. and Silver Lace Trust Fund “Documentation Recuperation” was signed Filanbanco makes the real sale and perpetual alienation in favor of Silver Lace Trust Fund the commercial portfolio along with its corresponding personal and or real guarantees that are detailed in the Attachments, for an approximate value of 150 billion sucres.



27.3- On June 30, 1998, the MUTUAL CONTRACT between Filanbanco S.A. and Silver Lace trust Fund “Documentation Recuperation” is signed through which Filanbanco grants a loan for 150 billion sucres for a term of up to five years at an annual readjustable interest rate equivalent to 1.10 times the basic rate of the CBE.



27.4- On June 30, 1998, the MUTUAL CONTRACT between Filanbanco S.A. and Enerco Trust Fund “Documentation Recuperation” is signed through which Filanbanco grants a loan for 150 billion sucres for a term of up to five years at an annual readjustable interest rate equivalent to 1.10 times the basic rate of the CBE.


Proof that Filanbanco was solvent



29. Reports from the superintendent of banks prior to the granting of liquidity loans.

The report SB-INBGF-98-0557 dated October 23, 1998, signed by the Superintendent of Banks addressed to the Presdent of the Board of the CBE, refers to the financial situation of Filanbanco the same which is affected by the internal crisis and the international financial situation. (Page 1, 3 and 4)

29.1. SB-INBGF-98-0623 dated November 19, 1998, signed by the Superintendent of Banks addressed to the General Manager of the CBE, informs about the financial situation of Filanbanco and its surplus of technical assets. (page 2)

30. Results from the Filanbanco Financial Group till march 1999

Three months after Filanbanco had been handed over to the State the bank reported profits which demonstrate that it was a liquidity crisis and not one of solvency.


Regarding the alleged crime of embezzlement



32. Prosecutorial Hearing

The Prosecutor’s opinion lacks the accusation of the crime of embezzlement

33. Ruling of the first chamber of alternate criminal justices January 15, 2010

The alternate justices do not make the embezzlement accusation


Why the confiscations were called seizures?



34. Report prepared by accounting firm of Delotitte & Toche on agreed upon procedures used at Filanbanco S.A. and Filanbanco Trust sent to manager of Filanbanco on May 8, 2001.
The report covers the application of Agreed upon Procedures for the identification of adjustments that need to be made to assets, contingencies, provisions and interest and social benefit estimates as well as the determination of losses till December 2, 1998.

At number 4, the firm points out: “Due to the scope, our job does not constitute an audit or a review of the financial statements practiced in accordance to accounting or generally accepted rules of review, therefore, we are not able to state and we are not stating or asserting an opinion as to the reasonableness of the Filanbanco or Filanbanco Trust financial statements to this or any other date”. (Page 5)
35. MEMORANDUM NO. INSIF-SFB-2001-1464 AUGUST 6, 2001

The National Director of Suoervision for Financial Institutions makes his announcement concerning the Deloitte & Touche report regarding losses till December 2, 1998 to the Superintendent of Banks Economist Miguel Davila. His analysis indicates the absence of objective results due to the difficulty of auditing balance sums that closed almost two years prior to begining the firm’s audit.

36. Report inj-2008 -0265 of the National Judicial Intendent of the Superintendent of Banks.

This report is the starting point for the confiscations. In the report, the Judicial Intendent of the SB, Raquel Endara sisiter in law of Pedro Delgado, recommends the President of the Banking Board to accept the Technical Report DNSEL-2008-087, dated January 22, 2008 specifically as it relates to its conclusions and recommendations. It attaches the resolution project with which the Banking Board authorizes the Superintendent of Banks and Insurance the approval of the report by the accounting firm Deloitte & Touche. (Page 5)

37. Pertinent part of the minutes of the extraordinary meeting of the banking board.

At the Banking Board’s extraordinary meeting held on February 26, 2008, the Superintendent of Banks is authorized through Resolution JB_2008-1084 to accept the report by Deloitte & Touche. Assisting this meeting were among other invitees the Economist Rafael Correa Delgado, Constitutional President of the Republic and Pedro Delgado.

38. Resolution no. jb-2008-1084 February 26, 2008

The Banking Board resolves in Art. 2 to authorize the Superintendent of Banks to approve the report presented by the accounting firm Deloitte & Touche of May 8, 2001, communicate I writingsaid approval to Filanbanco S.A., the AGD and the fiduciary merchant AGD in order for them to make the corresponding accounting entries. Article 3 orders in three days the reversal of the payment of 107 million USD made to AGD Trust Fund.

39. Reposition recourse.

On March 4, 2008, the attorneys for the Isaias brothers presented the Superintendent of Banks and Insurance a Reposition Recourse calling for the nullification of the Banking Board’s Resolution JB-2008-1084 of February 26, 2008 due to lack of motivation.

40. Minutes of the ordinary meeting of the AGD Board no. 150.

On July 4, 2008, the Board of the AGD appoints itself General Manager of the Agency of Guaranteed Deposits it names Carlos Bravo Macias, Esquire and resolves to apply article 29 of the Law of Reordering Economic Matter in the Financial Tax Area. The Minister of Finance at the time Economist Fausto Ortiz, President of the Board of the AGD refuses to sign the minutes as a sign of disapproval.

41. RESOLUTION No AGD-UIO-GG-2008.

Through this resolution, on July 8, 2008, the general manager of the AGD, Carlos Bravo, four days after being appointed proceeds to order the confiscation of more than 195 businesses belonging to the Isaias Dassum brothers and to others who had nothing to do with them.

42. Defenseless due to constituent mandate No. 13.

It was issued on July 9, 2008, by the Constituent Assembly whose article 1 upheld the legal validity of the AGD Resolution dated July 8, 2008 that ordered the confiscation of the assets of the former shareholders and former administrators of Filanbanco S.A., Article 2 declares that the AGD Resolution is not susceptible to any constitutional guarantee or of any other special nature and if in fact one comes before the court it should be filed away without suspending or impeding the compliance of said Resolution which thereby prohibits a defense to the confiscations.

43. OFFICIAL DOCUMENT JB-2008-1511.

Signed by the Secretary of the Banking Board addressed to the Liquidator of Filanbanco expresses the Resolution of the banking Board in its meeting of August 27, 2008 in which it authorizes an external audit with international partners to review the subsequent facts related to the portfolio recuperation and the report names Deloitte & Touche, a firm that was never hired.


Defence was no heard



44. Dated January 8, 2009

Xavier Castro, the attorney for the Isaias Dassum brothers persists in asking the SUPERINTENDENT OF BANKS, ENGINEER GLORIA SABANDO to be heard by the general commission in spite of various meetings being held ordering resolutions affecting the interests of the Isaias brothers and never gving him the opportunity to present legal and technical arguments to which all citizens are entitled to; his requests to be formally notiifed of resolutions made by the Superintendent of Banks and the Banking Board related to this case have not only been ignored , but rejected and finally demands to be provided with the documents of that resolved by the Banking Board regarding that which the authorities deem as debt at the hands of the former shareholders of Filanbanco in order to evaluate them and make a decision.

45. OFFICIAL DOCUMENT JB-2009-1140 JULY 21, 2009

In this document signed by Patricio Lovato, Secretary of the Banking Board, the Liquidator of Filanbanco S.A. is informed that the meeting of the Banking Board of July 16, 2009 it was resolved that the liquidation in it hands should update the sums of Filanbanco’s accounting balance that appeared in the Deloitte & Touche report and present a corresponding report.

46. OFFICIAL DOCUMENT JB-2009-1390

On August 27, 2009, Patricio Lovato, Secretary of the Banking Board, informs the Liquidator of Filanbanco S.A. in Liquidation that at the meeting held on August 25, 2009, it was resolved that for the update of the sums of the Deloitte & Touche report that only those accounts whose origin from the portfolio be reviewed, that means 14, 16 and its corresponding counterpart of ordered accounts (71) due to the unfeasability of updating the information of the other acoounts.

47. FLB-LIQ-GG-2009-1058

In this official document dated September 2, 2009 the liquidator of Filanbanco S.A. in liquidation addresses the President of the Banking Board making him aware of the Summary of the Report and the update of Deloitte & Touche in which arbitrarily 100% of the portfolio was included and none of the credits cited by the accounting firm.

48. OFFICIAL DOCUMENT 0354-09 November 6, 2009

Pedro Delgado, Advisor to the President of the Republic, addressed official document 0354-09 to the Banking Board requiring the Superintendent of Banks to identify the responsible parties for the Filanbanco’s noncompliance as it relates to the failure of providing properly signed balance sheets for more than four years. (Page 1)

49. MEMORANDUM DNEL-2009-788

On December 28, 2009, the National Director of Entities in Liquidation, Fabricio Zambrano sends the banking Board a report that mentions 100% of all the balances of all the categories to date that are detailed in the Deloitte & Touche report.

50. MEMORANDUM DNEL 2009-803

On December 31, 2009, the National Director of Entities in Liquidation, Fabricio Zambrano sends the banking Board a preview of the report of Filanbanco Memorandum DNEL-2009-788 which indictaes that the provisions considered by Deloitte & Touche were not included in the report.

51. The defense for the Isaias brothers demands to be notified of the sums resulting from the updates

Through the official document dated January 29, 2010, addressed to PEDRO DELGADO, PRESIDENT OF THE TRUST FUND CFN-AGD the defense for the Isaias brothers demanded that they be officially notified of the Banking Board’s resolution as to the final determination of the updated amount of the Deloitte & Touche report, in addition to emphasizing that they have not been heard by the authorities to explain their position, that the mechanics of the valuation process of the confiscated assets was unknown to them and that under these circumstances the Government could not proceed to sell said businesses.

52. Motion by the Isaias brother’s defense attorney, Xavier Castro

On March 17, 2010, the attorney for the Isaias brothers appeared before Judge Juan Falquez Fuertes, 20th Judge of Criminal Guarantees of Guayas requesting cautionary measures in order to avoid the imminient and irreversible threat of defenselessness in the face of Filanbanco’s closing and the abesence of being given information.

53. Granting of cautionary measures

On March 19, 2010, Judge Juan Falquez Fuertes, 20th Judge of Criminal Guarantees of Guayas immediately granted said constitutional cautionary measures requested by Mr. Roberto Isaias through his attorney.

54. Filanbanco refuses to give former shareholders information.

On March 24, 2010, Filanbanco asks the 20th Judge of Criminal Guarantees of Guayas to revoke the cautionary measures and rejected the ruling of admission issued by its authority.

55. Nation’s attorney general intervenes to impede the delivery of information.

On March 24, 2010, the nation’s attorney general addresses the 20th Judge of Criminal Guarantees of Guayas asking for a revocation of the precautionary measures issued by him on March 19, 2010.

56. Revocation of the ruling that accepted the request for precationary measures in favor of the Isaias brothers.

The intervention of political power on judicial power can be seen on March 31, 2010 when Judge Juan Falquez Fuertes, 20th Judge of Criminal Guarantees of Guayas, the judge that granted the precautionary measures is replaced by another judicial employee for the sole purpose of revoking the previous Ruling and thereby refusing to deliver the information to which the former shareholders of Filanbanco S.A. were legally entitled to receive.

57. OFFICIAL DOCUMENT MF-SCG-2010-0218

On March 29, 2010, the Secretary of Governmental Accounting sends a notification to the Minister of Finance that states that on the AGD balance sheet dated December 31, 2009 that there were account entries charging the Isaias brothers with 477 million USD corresponding to capital and other accounts totaling 300 million for interests.

58. Pedro Delgado intervenes in the notification of the updated amount of the Deloitte & Touche report.

On March 30, 2010, EFREN ROCA ALVAREZ the GENERAL COORDINATOR OF THE UNIT OF THE ADMINISTRATION OF ASSETS AND RIGHTS OF THE EX-AGD, FROM THE MINISTRY OF FINANCE by official document MF-DM-CAGD-2010-1565, notifies the attorney for the Isaias brothers of the results from the report prepared by the Under Secretary of Governmental Accounting from the Ministry of Finance. He makes reference that due to AGD instructions an accounts receivable account has been created charging the former shareholders of Filanbanco through an accounting entry registered in the balance of Filanbanco S.A. in liquidation on December 31, 2009 of $477 million USD and $300 million USD for interests on capital.

59. The banking board never approved that charged to the accounts of the balance sheets of Filanbanco S.A. in liquidation as it should have

ON April 13, 2010, the attorney for the Isaias brothers, XAVIER CASTRO MUNOZ asked the Banking Board to have its Secretary certify whether the Banking Board approved the update of the Deloitte & Touche report, and if so, that he be given a certified and conplete copy of said minutes. This never occurred.

60. The defense of the Isaias brothers challenges the amount.

Through a motion dated April 7, 2010, the attorneys for the Isaias brothers challenge the notification of the supposed debt charged to them and make themselves available to the Ministry of Finance to discuss with their technicians and attorneys the terms of this challenge for the purpose of arriving at a just, reasonable and final solution.

61. The defense for the Isaias brothers requests that due process be respected.

Through a motion dated April 20, 2010, the defense for the Isaias brothers asks the Banking Board to proceed in accordance to the constitutional laws of due process and to acknowledge the liquidations of capital and interests that we have been notified of without any prior authorization and/or approval of the Banking Board. (Page 2)


Other documents of interest



62. REPORT IN SITUS No 001.

Document prepared by the officials of the Superintendent of Banks on November 26, 2002. This report condemns the existence of losses exceeding $895 million USD as a result of mismanagement during the Government’s administration of Filanbanco.

63. DOCUMENT No 6-2001.

This document sent by the United States Department of Justice to Ecuador’s Ministry of Foreign Relations to comply with that solicited by the President of Ecuador’s National Court of Justice proves that North American banks did not receive money transfers from Filanbanco Trust to accounts related to Roberto and William Isaias.


Judicial analysis of the Filanbanco case / December 2003



64. Dr. Juan Larrea Holguín

65. Dr. Enrique Echeverría G.

67. Dr. Edgar Teran Teran

68. Dr. Germánico Maya Rivadeneira

69. Dr. Jorge Wright Ycaza

70. Dr. José Romero Cordero

70. Dr. José Romero Cordero


Judicial analysis on the law, and of the reform of Art. 257



71. Dr. Wladimiro Villalba Vega.

72. Dr. Ernesto López F.


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