EXECUTIVE SUMMARY

COOPEMEX RL CASE
The reasons for the intervention and subsequent action plans
to safeguard the economic integrity of thousands of shareholders of the former
Coopemex savings and loan cooperative are detailed below:
Cancellation of merger of Coopemex with Coopenae
The first week of February 2010 Coopenae RL decides not to merge
with Coopemex RL since after its co-administration or due stage
diligence revealed that the merger was not financially viable.
SUGEF intervention
On February 17, 2010, the SUGEF decided to intervene and block any
type of operation of the entity by the suggestion of CONASSIF,
mainly due to the drop in the Patrimonial Sufficiency indicator of a
16% to 7% when the minimum allowed is 10%.
Intervention results
Parallel Accounts : One of the things that SUGEF points out is that the
cooperative did not report all its defaulters, that is, there were accounts
parallel transactions that were recorded outside the entity's balance sheet. He
The problem with parallel accounts is that they give a false image of the
company, making it seem more solid than it is.
Poorly granted credits: To lend money, entities like this have
than demanding from the debtor a good guarantee, that is, something with
which to respond in
if you cannot pay your fees. According to the SUGEF report at 4
people were lent 5 million dollars, that is, more than 3 thousand
millions of colones. Of them, 3 had been associated for 48 hours without
no guarantee. These millions were used to purchase a
shopping center that remains in Monteverde, which belonged to the same
Coopemex. According to SUGEF, the cooperative should never have invested in
a
business of that type, which is why they were forced to sell now
that a condition of Coopenae for the merger was that it had to
get rid of the property.
Decrease in social capital : In a cooperative the sum of all the
contributions from members is called social capital: that capital is important
for the solidity of a company and confidence in it. These monies can
be returned to each partner according to their corresponding contribution, in
the case
Coopemex SUGEF believes that more than 5,550 million came from that capital
to cover gaps in beads. This directly impacts the indicator of
Asset Sufficiency that dropped from 16% to 7% in a matter of 2 months
when the minimum should be 10%.
Advance of allowances: The Administrative Council of Coopemex agreed
get ahead 24 diets. For SUGEF this is not normal, because as stated
The per diem is paid according to the meeting attended and is not a payment
to
future.
https://www.coursehero.com/file/16283869/Resumen-ejecutivo-Caso-COOPEMEX-RL/
Transfer of cars: Coopemex had 2 cars that passed into the hands of
a daughter of the manager and another of the president, William Villalobos. In
defense of
The hierarchs said that for years there has been a plan in the cooperative
which allows them to save part of their salary. This is how, it is pointed out,
They paid for the cars. One of the cars costs more than 70 million colones.
TAKEN ACTIONS
Popular Plan
This plan had as its main objective the rescue that will allow the
savers recover the full amount of their deposits. These reserves amounted to
about ¢77,000 million. The Bank will recover that investment by collecting
of the loans that Coopemex made. Thousands of personnel associated with the
extinct Coopemex will have to wait since it is not yet known when it will be
will return its respective share capital, this is because it is not yet
possible to sell the Monteverde Shopping Center, one of the main
assets of the defunct entity, whose value is around $6 million. According to
The main problems reported are that the land would face a
complaint before the Administrative Environmental Court, which has prevented
its
sale. The general manager of the Popular and Community Development Bank,
Gerardo Porras, stated that these people will receive their money until
the trust is liquidated. Banco Popular absorbed the portfolio of the
cooperative after the declaration of bankruptcy.
Coopemex-BCR Trust 2010
In order to be able to cancel all or most of the capital
of the shareholders, a trust administered by the Bank was created
of Costa Rica (BCR), it has 13 billion colones in assets
and manages a loan portfolio of 19 billion colones. The
most of the credit debtors are fulfilling their part,
given that 85% were delivered to public sector employees.
CURRENT SITUATION
To this day, Banco Popular continues to operate the old loan portfolio
from Coopemex and thanks to this action taken by this bank it has been
canceled
or returned almost all of the savings to the shareholders, but not the capital
social since this will be returned once the trust that
manages the Bank of Costa Rica. To cancel the trust,
must liquidate or sell the total assets plus the Monte property
Green with an approximate value of $6 million; it is not expected to be
sold in less than a year as it faces a complaint before the Court
Administrative Environmental, which has prevented its sale, so the case at the
It seems to be going on for a long time.
There is currently a judicial process to clarify responsibilities
of the case and the shareholders will continue to wait for all this to be clarified.
Sugef indicates in its report that Coopemex officials acted in an “abusive, irresponsible and reckless” manner.
According to the text:
Coopemex granted loans for $5 million to four affiliates – three of whom had joined the entity days before –
and did not carry out studies on their payment capacity. The loans were to buy part of the 41 stores in the
Monteverde shopping center, owned by the cooperative. The credits were granted to Andrés Yankelewitz, Luis
Alonso Barboza, Gabriel Sragovicz and Danilo Zamora Miranda.
The amounts disbursed to these clients were greater than what was approved, according to Sugef.
Senior officials of the entity received ¢117 million between September 2009 and last January. Of them,
members of the Administration Council, the Surveillance Council and the Education Council received ¢52
million. The general manager, the Human Resources manager and the financial assistant received ¢17 million.
¢28 million were also transferred to several former employees.
The directors of the cooperative advanced allowances of ¢165 million.
Sugef claims that five executives of the cooperative were financed to purchase vehicles in the name of the
entity and that they were then transferred to officials and even sold to some relatives.
Coopemex apparently hid 50 lines of credit for ¢8.4 billion and $170,000 in a parallel account. The delinquent
debtors of these loans appeared up to date thanks to the computer programming of the entity's systems.
Association of savings and credits

36 years in the market.

Made up of 80,000 associates

Third place in the ranking of the savings and credit cooperative sector.

__

1998-1999 crisis in the cooperative sector ended with two cooperatives and two banks in the
country.

Coopemex made the aggressive decision to grow.

Absorbs small cooperatives:

1994 Coopehostofa

1995 Coopesantacalina

1998 Coopesantarosa

2000 Cootilaran

2002 Coocan

2002 Cemsucoop

2003 Conpesanic

He increased his workforce from 49 employees to 224.

From 4 branches to 13.

Experiment in different fields:

Electronic service in the south zone.

Tilapia production.

Tourism, technological and even educational businesses.

2007 Construction of a shopping center in Monteverde began, which had a cost

of $8 million
2008 It reported assets of more than ¢100,000 million, a workforce of 320
people and 20 branches.
The credit portfolio increased by 37% but its overdue portfolio doubled.
In mid-2008 he began to limp
  Set. In 2008 it joined forces with Banco Popular to unify its branches
 Nine months later it announced its intention to merge with Coopenae.

Due to a sharp drop in assets, it was intervened by the General Superintendence of Financial
Entities (SUGEF) on February 17, 2010.

 Off-balance sheet credit portfolio (delinquent operations were not

reported to the SUGEF)
 Delays of more than 90 days amounted to ¢4,500 million, while the
healthy portfolio was ¢80,000 million.
 Weaknesses in credit operations related to the sale of commercial
premises.
 Advance payment of allowances to members of the Board of Directors,
surveillance and education.
 Reductions in social capital to update credit operations of people related
to the cooperative.

Four credit operations for $5,502,443, to finance the sale of a business center in Monteverde

• $1,464,610.97, awarded to Andres Yankelewitz Lev. I joined as an associate on December 22,

2009 and the loan was formalized on December 24, 2009.

• $1,186,214.52 awarded to Luis Alonso Barboza Lepiz, secretary of the board of directors of
Instaenvios SA and Credienvios SA, companies related to Instacredit SA, who joined as an
associate on December 23, 2009. The credit was formalized the next day.

• $1,415,294.48, was awarded to Gabriel Sragovicz, brother-in-law of Yankelwitz. Joined as an

associate on December 23, 2009. The credit was formalized on December 24, 2009.

• $1,436,323.25 went to Danilo Zamora Miranda, former owner of the property where the 41 stores
were built. Associate since July 9, 2005 and the credit was formalized, also on December 24, 2009

Due Process

 The Public Ministry files a formal complaint with the College of Public
Accountants regarding the anomalies identified in the work papers.

 The information is transferred to the School's Prosecutor's Department,

who is obliged to respond to the complaint in accordance with the
applicable regulations.
 The Board of Directors prepares a report indicating that the complaint is
of an OFFICIAL nature.
  The Prosecutor, a member of the Board of Directors, prepares a report in
accordance with Law 1038 and regulations.

The report determines that the type of error committed is FORM (when the substance of the matter
is correct but the way of presenting it is not)

The objective of Coopemex was to provide its members with a cooperative based on savings and
credit, but as their trajectory and growth they ventured into various activities unrelated to their
origin such as electronic service, tilapia production, tourism, technological and educational
businesses, which caused the disorientation of their normal and philosophical activities, causing
chaos in their administration.

The Board of Directors, made up of eight members, studies said report and has two options: accept
the commission's recommendation or separate with justified reason.

In this case, the Board of Directors accepts the report and qualifies that a technical failure was
committed, in its capacity it investigates the articles of Law 1038 and Regulations that were not
complied with by Authorized Public Accountants and imposes the sanction.

The CPA is then informed that they have 5 business days to process a revocation appeal.

 This case is classified as a technical foul, under the professional practice

act.
 In the Coopemex case, the process has already been going on for 5 years
without concluding and defining those responsible for the events, there is
no progress in this regard.

Bibliography
https://www.coursehero.com/file/16283869/Resumen-ejecutivo-Caso-COOPEMEX-RL/
Presentation by Ronald Gonzalez C Updated April 10, 2014 Prezi
https://prezi.com/3wlbxbnso002/caso-coopemex/

http://wvw.elfinancierocr.com/ef_archivo/2010/febrero/28/finanzas2274142.html
https://prezi.com/kun6tvewzmvp/coopemex/

Powered by TCPDF ( www.tcpdf.org )

Bi