Stake Bank Enterprises Accuses Atlantic Bank of Unlawful Acts, Seeks Central Bank Probe

Stake Bank Enterprises Accuses Atlantic Bank of Unlawful Acts, Seeks Central Bank Probe

Stake Bank Enterprises Limited (SEBL) is making allegations against Atlantic Bank Limited and has now asked the Central Bank Governor, Kareem Michael, to investigate the unlawful acts and the conflicts of interest.  According to SEBL, Atlantic Bank Limited has been using monies from its depositors as well as the employees’ pension fund to finance the Stakebank project and there were several instances where Atlantic Bank did not report accordingly to the Central Bank.  It is a case where SEBL is claiming that there were ‘serial breaches of the Domestic Banks and Financial Institutions Act.’  A 3-page letter was sent by SEBL’s attorney, Senior Counsel Godfrey Smith of Marine Chambers, asking the governor to investigate certain steps taken by Atlantic Bank Limited, before the receivership and to date.  In the 3-page document, it asserts that not only were monies being moved around without security, but that two of the shareholders in Atlantic Bank were also very influential in the company, Operaciones Portuarias, a significant shareholder in Stakebank.  It is further claimed that these shareholders, Guillermo and David Bueso, were the ones who led all negotiations with both SBEL and Atlantic Bank.  It is a curious piece of information as the Central Bank requires that, ‘a director, shareholder or officer of a bank who has an interest in or relation to a party to a loan or transaction with a bank disclose the nature and extent of his interest.’  A portion of the letter to Governor Michael, reads, quote, “….ABL created subsidiary credit facilities, under the guise of construction credit loans, amounting to roughly $21 mil to continue funding SBEL’s project and to avoid CBB scrutiny. These loans were then serviced and settled by Bueso-related entities, including OPSA.  There has been a significant write down in the value of the security held by ABL, putting at risk ABL’s depositors and employee pension funds given ABL’s failure to ensure that its loans to SBEL were properly collateralized.”  End of quote. As we reported on Friday, SBEL is looking to take Atlantic Bank to court while Atlantic Bank has already filed a lawsuit over land belonging to Mike Feinstein.  It is a story that is expected to develop even further and we will keep following./////

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