Inverlink case
Encyclopedia
Inverlink was one of the most aggressive financial groups in Chile at the beginning of the 2000's. The group was engaged in pension fund administration, general insurance, private health care insurance, mutual funds and stocks, and leasing. Inverlink's firms included Inverlink Corredores de Bolsa, Inverlink Administradora General de Fondos, Inverlink Leasefactors, Inverlink Hipotecaria, Inverlink Consultores, Inverlink Asset Management and Inverlink USA. The holding also owns 75.5% of private pension fund manager AFP Magister and owns healthcare insurer Vida Plena.
2003 Pamela Andrade, the secretary of Chilean central bank chairman Carlos Massad, was sacked and put under investigation after she was surprised sending e-mails containing confidential insider information from Massad's computer to Inverlink's ex-CEO Enzo Bertinelli.
During the probe was discovered that Inverlink had also been bribing an employee at CORFO
, the state economic-development agency, to “lend” it certificates of deposit as collateral for short-term operations in which it cashed in on its inside information. To raise funds to cover withdrawals, it began selling these certificates. Over 100,000,000 USD were sold to mutual funds and other local institutions before Corfo discovered the theft.
The Inverlink scandal rocked the local financial establishment last year and led to the resignations of central bank chairman Carlos Massad and securities regulator Alvaro Clarke.
2003 Pamela Andrade, the secretary of Chilean central bank chairman Carlos Massad, was sacked and put under investigation after she was surprised sending e-mails containing confidential insider information from Massad's computer to Inverlink's ex-CEO Enzo Bertinelli.
During the probe was discovered that Inverlink had also been bribing an employee at CORFO
CORFO
Production Development Corporation is a Chilean governmental organization that was founded in 1939, by President Pedro Aguirre Cerda, to promote economic growth in Chile...
, the state economic-development agency, to “lend” it certificates of deposit as collateral for short-term operations in which it cashed in on its inside information. To raise funds to cover withdrawals, it began selling these certificates. Over 100,000,000 USD were sold to mutual funds and other local institutions before Corfo discovered the theft.
The Inverlink scandal rocked the local financial establishment last year and led to the resignations of central bank chairman Carlos Massad and securities regulator Alvaro Clarke.
Weblinks
- Article in Losing its shine The EconomistThe EconomistThe Economist is an English-language weekly news and international affairs publication owned by The Economist Newspaper Ltd. and edited in offices in the City of Westminster, London, England. Continuous publication began under founder James Wilson in September 1843...
on 3. April 2003