Financial Pacific, still another fallen star in 2012

I have heard that residents in Boquete Panama has been hurt by the failure of the investment firm Financial Pacific.

Apparently in an audit by the Superintendency of Securities the firm was discovered to be missing seven million dollars. Panama Guide

It might be of interest to know that the President of the Republic has been busy using his office to deny that he had any involvement with the failed company.

The National Chamber of Commerce has issued this statement in asking for an investigation into the failure of the firm.

“This case undermines the international image of our country, since its effects are counterproductive in the attraction of investments and has a bearing on the value of shares that are quoted on the stock exchange, which ends up creating insecurity for current and future investors in Panama,” the chamber said. “We join the pronouncements made by the Superintendency of Banks of Panama, the Panama Stock Market and the Panama Chamber of Capital Markets for due transparency and a quick, complete investigation that clarifies what happened with Financial Pacific.”

La Prensa

The newspaper La Prensa, no friend of the President, has published a lengthy article tying President Martinelli with Financial Pacific and the Petaquilla Gold mining operation in Panama. Petaquilla is a publicly held Canadian company.

La Prensa claims to have documents from the fraud investigation process in Financial Pacific, linking Martinelli with this brokerage.

“The investigation was performed from 22 to 29 November 2012, and she, Pellegrini (A former employee of Financial Pacific currently in custody), said that managers of Financial Pacific, West Clare and Ivan Valdes, said publicly that an account called High Spirit is “Mr. Ricardo Martinelli.”

“There is an account called High Spirit, which Mr. Ivan Valdes and West Clare have publicly stated that Mr. Ricardo Martinelli had the opportunity to manipulate the stock market value of shares of Petaquilla. In this way, they could make money with inside information he received President Martinelli on Petaquilla’s performance. ”

Martinelli accused La Prensa of “manipulating information”, and try to involve him in a “small problem”.”

La Prensa

According to the same article in La Prensa the “Officials of the British Columbia Securities Commission, the Canadian regulator which is subject Petaquilla Minerals Ltd. – contacted yesterday by The Canadian Press on publications in Panama, preferring for now “no comment on the issue.” In this city, the Embassy of Canada decided not to comment, stating that the ambassador, Sylvia Cesaratto, is on holiday in your country.”

There is much more background on the Newsroom Panama site.

and more on the Panama Guide.

In 2012 we have seen the collapse of Pronto Cash, the seizure of COACECSS Cooperative and this issue with Financial Pacific. I for one would not consider putting any significant sum of money into any entity in Panama.


  1. VacouverJurgen says:

    I really appreciate the candid reports about the questionable dealings of those involved in major financial transactions in Panama that also links with the Martinelli government. Thanks for sharing with all on Boquete ning.

    Over the past year as I have had the privilege to visit Panama on two occasions, I have become increasingly aware and concerned with the politics of the country as it impacts its own citizens. Besides the capital investment matter, I have observed with alarm how the indigenous people have had to assert their rights -even resulting in the death of several protesters- to avoid having their way of life radically altered by massive mining and hydro electric projects. As a Canadian, I felt ashamed that my own government (Prime Minister Harper’s Conservatives) was fully supporting the Canadian mining company and other firms to exploit Panama with the collaboration of the Martinelli government. The blockades of the protesters were significant and were felt in such resort regions as Bocas where it was even difficult to have fresh produce for weeks at a time which, of course, once again impacts the country’s economy as tourists take note. Communications by phone between the two countries was also temporarily affected, something I personally experienced first hand.

    The next upheaval may likely be around the controversial hydro projects Panama plans to build, once again subjecting the native population to potential harms. For more information, check out information at Vancouver-based Mining Justice Alliance and this from the Care2 petition web site:
    “The Ngabe, Panama’s largest indigenous group have been forced off their lands since the time of the conquistadors. Now, 20 years after the government had ceded land to them, it wants it back to build a massive hydroelectric dam and extract rich minerals.

    For Care2 activist Cathy White, this injustice was just too much. So she started this petition to enlist people to help the Ngabe keep their home.

    Panama is one of the most ecologically diverse countries on earth. Species are found on Ngabe land that don’t exist anywhere else. If the Barro Blanco dam and mining projects go forward, they’ll all be lost.

    One Ngabe village was already destroyed last year when the Changuinola River was dammed. Now, they’re fighting back. This year Ngabe activists closed the Pan-American highway in protest demanding an audience with Panama’s president. But to save their land and all the natural treasures it supports, they’ll need the help of the international community.

    Tell Panama’s government to pack off the Barro Blanco dam plan and save the Ngabe’s homeland.

    Perhaps the most recent illustration of inter government sweetheart complicity between the elites in Canada, Panama, Israel and the U.S. can be seen where the 3 countries were amongst a tiny group of 9 who voted against the modest claim for UN membership for Palestinians. You can be certain that financial gains were once again a part of the equation, but their math just might be wrong as tourists and others begin to avoid those countries that have the stains of blood on their hands in the name of profits for the 1%.

  2. I interviewed these guys about 3 years ago…. I thought then that they were frauds. I just wanted to open a simple trading account and they said I would have to set up a Belizean Corporation and bank account in order to do any business with them. I would also have to give them POA over my trades and assets. Are you kidding? Having worked in the Financial Services business for many years, I am used to smelling a fraud. (Bernie Madoff being one.) The Account Executives I met with were using the 2 out of 3 rule. (The Brokerage House makes money, the Account Executive makes money, the customer?…… well 2 outta 3 ain’t bad…) I was hoping there would be a legit broker in Panama…so far I don’t know of one.

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