Villalobos Investors Losing Heart

by Philip Morton, Investors Offshore.com

27 February 2003

According to an AM Costa Rica report, a change of attitude appears to be taking place amongst Villalobos investors in the jurisdiction, many of whom are losing faith in the fugitive financier.

The national news service revealed that the mood amongst investors is becoming increasingly gloomy, and that only a 'hardcore handful' now believe that Luis Enrique Villalobos Camacho will return to redistribute the estimated $1 billion held in trust for his investors.

Morale has been further hit, according to AM Costa Rica, by the fact that:

'An effort to hire a lawyer by the United Concerned Citizens & Residents of Costa Rica has not reached its goal of $100,000...The group wants to bring criminal and civil action against key members of the Costa Rican government and the judiciary in order to speed the investigation along. The group believes officially that Villalobos is innocent of wrongdoing and has been persecuted by bureaucrats working at the urgings of jealous bankers.'

However, recent reports have revealed that an increasing number of the estimated 6,400 investors are now beginning to question exactly how Villalobos was able to pay up to 3% returns to his investors each month- a concern shared by the Costa Rican government. Although no charges have yet been brought against the runaway financier, an arrest warrant based on allegtions of fraud and money laundering has been issued.

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