Last updated on January 14, 2018
Cancun, Q.R. – Seven people appeared before a judge on Wednesday in connection with fraudulent loans being granted to finance real estate investments connected to the Group Grand Coral.
The ex-president of the Generalitat Valenciana and Bancaja, Jose Luis Olivas, along with four executive directors of the Bank of Valencia and two businessmen from Operation Coral, were arrested.
The seven accused appeared before National Court Judge, Juan Pablo González, in connection with the case in which the loans granted to finance real estate investments in the Caribbean in Cancun and Riviera Maya were done so fraudulently.
The men are alleged to have made fraudulent loads from Bancaja and Banco de Valencia for the Group Grand Coral to cover its investments in Mexico between 2005 and 2010. In total, nine men have been arrested in connection with the loans.
The accused are José Luis Olivas; Sunday Parra, who was CEO of Banco de Valencia; Aurelio Izquierdo, former CEO of Bancaja; José Cortina, former director general of the entity and Rafael Tomas Codoñer, member of the investment committee.
Also accused are entrepreneurs Juan Vicente Ferri and Jose Salvador Baldó, group owners of Mar Confort and intended beneficiaries of the “advantage” dispensed in the Grand Coral operations.
According to the Civil Guard, financial loans for six real estate projects in Cancun and Riviera Maya exceeded $500 million US, which resulted in a great loss to the financial institutions, according to the Bank of Spain.
The men are accused of diverting more than $130 million US to Andorra and Switzerland through an elaborate scam. They have been accused of crimes of misappropriation, unfair management, money laundering, corruption and falsification of private documents.
According to a forensic audit prepared by experts from the Bank of Spain, during the presidency of Jose Luis Olivas, at least two loans granted by Bancaja to the Grand Coral society are being considered “doubtful for reasons of default” since 2010, and that refinancing approved by the company did not meet the standards of the Bank of Spain.
Their report has put into question a syndicated loan of 520 million euros that was approved by Olivas on January 29, 2010 to carry out “refinancing and regrouping of outstanding debt” of two societies of the Grand Coral Group: Playa Paraiso Maya and Development Projects and Hispanos.