Inverlink case

Last updated

Inverlink was one of the most aggressive financial groups in Chile at the beginning of the 2000s. [1] 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 Andrada, the secretary of Central Bank of Chile 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 US$100,000,000 were sold to mutual funds and other local institutions before Corfo discovered the theft.

The Inverlink scandal rocked the local financial establishment last year[ when? ] and led to the resignations of central bank chairman Carlos Massad and securities regulator Alvaro Clarke.

In 2013 the Supreme Court of Chile determined the restitution of CLP$500,000,000 (approximately US$850,000) from the municipal council of La Pintana to CORFO. CORFO expected to obtain CLP$50,000,000,000 from 26 similar claims. [2]

Related Research Articles

A pension fund, also known as a superannuation fund in some countries, is any plan, fund, or scheme which provides retirement income.

<span class="mw-page-title-main">Federal Deposit Insurance Corporation</span> US government agency providing deposit insurance

The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures credit unions. The FDIC is a United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was created by the Banking Act of 1933, enacted during the Great Depression to restore trust in the American banking system. More than one-third of banks failed in the years before the FDIC's creation, and bank runs were common. The insurance limit was initially US$2,500 per ownership category, and this was increased several times over the years. Since the enactment of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2010, the FDIC insures deposits in member banks up to $250,000 per ownership category. FDIC insurance is backed by the full faith and credit of the government of the United States of America, and since its start in 1933 no depositor has ever lost a penny of FDIC-insured funds.

<span class="mw-page-title-main">Zurich Insurance Group</span> Swiss insurance company

Zurich Insurance Group Ltd is a Swiss insurance company, headquartered in Zürich, and the country's largest insurer. As of 2021, the group is the world's 112th largest public company according to Forbes' Global 2000s list, and in 2011 it ranked 94th in Interbrand's top 100 brands.

An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked companies, insurers, pension funds, sovereign wealth funds, charities, hedge funds, REITs, investment advisors, endowments, and mutual funds. Operating companies which invest excess capital in these types of assets may also be included in the term. Activist institutional investors may also influence corporate governance by exercising voting rights in their investments. In 2019, the world's top 500 asset managers collectively managed $104.4 trillion in Assets under Management (AuM).

Deposit insurance or deposit protection is a measure implemented in many countries to protect bank depositors, in full or in part, from losses caused by a bank's inability to pay its debts when due. Deposit insurance systems are one component of a financial system safety net that promotes financial stability.

<span class="mw-page-title-main">New York Life Insurance Company</span> American life insurance company

New York Life Insurance Company (NYLIC) is the third-largest life insurance company in the United States, the largest mutual life insurance company in the United States and is ranked #67 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. NYLIC has about $593 billion in total assets under management, and more than $25 billion in surplus and AVR. In 2019, NYLIC achieved the best possible ratings by the four independent rating companies. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

The Massachusetts Mutual Life Insurance Company, also known as MassMutual, is a Springfield, Massachusetts-based life insurance company.

A custodian bank, or simply custodian, is a specialized financial institution responsible for providing securities services. It safeguards assets of asset managers, insurance companies, hedge funds, and is not engaged in "traditional" commercial or consumer/retail banking like lending. The role of a custodian in such a case would be to:

Itaú CorpBanca is the fourth largest commercial bank in Chile, the bank is owned by Itaú Unibanco (36%), the largest bank in Latin America by assets and CorpGroup (30%), a Chilean financial holding. Currently the bank has 398 bank branches in Chile and Colombia, being 224 in Chile and 174 in Colombia. Itaú Corpbanca is headquartered in Santiago and has offices in Lima, Madrid and New York City.

<span class="mw-page-title-main">Flow of funds</span>

Flow of funds accounts are a system of interrelated balance sheets for a nation, calculated periodically. There are two types of balance sheets: those showing

<span class="mw-page-title-main">Korea Deposit Insurance Corporation</span>

The Korea Deposit Insurance Corporation (KDIC) is a deposit insurance corporation, established in 1996 in South Korea to protect depositors and maintain the stability of the financial system. The main functions of KDIC are insurance management, risk surveillance, resolution, recovery, and investigation.

<span class="mw-page-title-main">Financial market participants</span>

There are two basic financial market participant distinctions, investor vs. speculator and institutional vs. retail. Action in financial markets by central banks is usually regarded as intervention rather than participation.

Celulosa Arauco y Constitución is a Chilean wood pulp, engineered wood and forestry company controlled by Anacleto Angelini's economic group; Empresas Copec. In 2006 CELCO/ARAUCO had five pulp mills in Chile and one in Argentina. Apart from pulp mills, CELCO/ARAUCO has 4 engineered wood manufacturing plants in Chile, 2 in Argentina and 2 in Brazil.

<span class="mw-page-title-main">Ministry of Finance (Chile)</span> Ministry in the government of Chile

The Ministry of Finance of Chile is the cabinet-level administrative office in charge of managing the financial affairs, fiscal policy, and capital markets of Chile; planning, directing, coordinating, executing, controlling and informing all financial policies formulated by the President of Chile.

<span class="mw-page-title-main">Caisse des dépôts et consignations</span> French financial institution

The Caisse des dépôts et consignations is a French public sector financial institution created in 1816, and part of the government institutions under the control of the Parliament. Often described as the "investment arm" of the French State, it is defined in the French Monetary and Financial Code as a "public group serving the public interest" and a "long-term investor". Since 2017, Éric Lombard has served as its CEO.

The Indiana Treasurer of State is a constitutional and elected office in the executive branch of the government of Indiana. The treasurer is responsible for managing the finances of the U.S. state of Indiana. The position was filled by appointment from 1816 until the adoption of the new Constitution of Indiana in 1851, which made the position filled by election. As of 2018, there have been fifty-five treasurers. The incumbent is Republican Dan Elliott who has served in the position since January 1, 2023.

<span class="mw-page-title-main">ANSES</span> Argentine social insurance agency

The National Social Security Administration is a decentralized Argentine Government social insurance agency managed under the aegis of the Ministry of Health and Social Development. The agency is the principal administrator of social security and other social benefits in Argentina, including family and childhood subsidies, and unemployment insurance.

The World Pensions & Investments Forum is a research and policy oriented conference organised by the World Pensions Council (WPC), also known as the International Association of Pension Funds (IAPF), in partnership with regional and supranational organisations, large public and private institutional investors from G10 countries, the emerging nations of Eastern Europe, Latin America, Asia and the MENA area.

<span class="mw-page-title-main">IFD Kapital Group</span>

IFD Kapital Group, earlier also called IFD Capital Financial Group, is a Russian financial holding company founded in 2003 from LUKoil non-oil assets, based in Moscow. With assets exceeding US$14.7 billion and total shareholders’ funds of 7.5 billion US$ as of 2012, it ranked among the top-100 largest Russian companies by volume of proceeds, according to ratings of Expert-400 and finance500.com. As of 2013, it had a triple A rating with a Russian rating agency.

References

  1. Inverlink denies responsibility in central bank espionage case retrieved on 18 Mai 2011
  2. Article in Chilean newspaper La Tercera Caso Inverlink: Corte Suprema obliga a restituir más de $500 millones a Corfo Archived 2016-03-04 at the Wayback Machine , on 31 January 2013, retrieved on 31 January 2013