K&L Gates Continues to Assist in Recovery of Hundreds of Millions of Dollars Lost Through 1996 Failure of One of Ecuador’s Largest Banks
The underlying case alleged that, through a series of fraudulent transactions, the Ortega family that controlled Banco Continental siphoned approximately $150 million from the bank through loans to other Ortega-controlled companies in a manner which shielded those companies from subsequent claims when Banco Continental failed and was taken over by the Central Bank. The action, which involved a three-month trial in the Court of Appeal of the Commonwealth of the Bahamas, was one of the most high-profile cases resulting from a number of bank failures in Ecuador in the late 1990s, with the March 2015 judgment from The Judicial Committee of Her Majesty's Privy Council in London finding in favor of the Bank of Ecuador on its claims of breaches of fiduciary duty and dishonest assistance by the respondents.
K&L Gates Boston partner Michael DeMarco has served as lead counsel and international coordinating counsel to The Republic of Ecuador and their Central Bank on the case since the firm became involved with the matter in 2008, with Miami partner Jeffrey Kucera also involved in the latest action.
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