MIAMI, Nov. 27 FL-Patton-Boggs-Banco
MIAMI, Nov. 27 /PRNewswire/ -- The former President of Banco Dominicano
del Progreso, S.A. -- Banco Multiple was found liable of civil theft, fraud
charges and breach of fiduciary duty against the bank and its related
companies and now faces at least $80 million in damages.
Miami-Dade County Circuit Court Judge Mary Barzee-Flores ruled late
Wednesday that Pedro Castillo converted bank funds for his own use, breached
his fiduciary duty to the bank, defrauded the bank and committed civil theft.
Barzee-Flores found that Castillo fraudulently concealed the true state of
the bank's affairs from its board of directors, audit committee, external
auditors and Dominican banking regulators. She found that Castillo and
companies related to his business deals are liable to Banco Dominicano del
Progreso.
Damages could exceed $100 million once attorney fees and legal costs are
combined, a victory for the bank and other Dominican Republic-based companies
seeking restitution in civil court.
The judge ruled that none of the defenses raised by Castillo had any
merit. "I found his testimony not credible and unsupported by the other
evidence and testimony at trial," Barzee-Flores said.
"This is a complete victory for Banco del Progreso and the enormous effort
that Banco, its directors, current executives and staff have made to assist in
this investigation and trial," said Read McCaffrey, who directed the legal
team from the D.C.-based Patton Boggs LLP, which represented BDP in the civil
case.
The ruling ends nearly three years of dispute in the 11th Judicial Circuit
Court in Miami-Dade County. The plaintiffs alleged in February 2006 that
Castillo, during his tenure as president and chief executive officer of the
bank, defrauded BDP and the other plaintiffs by stealing money through 403
separate transactions involving payments to himself, companies that he
controlled and third parties for goods and services that benefited him.
"Judge Barzee-Flores concluded that BDP had proved each and every of the
403 transactions in which the bank had alleged fraud, civil theft or
conversion," said Stephen Diaz Gavin, part of the legal team from Patton
Boggs.
The judge also found that Castillo used the money taken from the bank to
buy and improve luxury condominiums in Miami and the tony ski resort Vail. He
also used the funds to make a down payment on a helicopter, and yachts, among
other expensive items, Gavin said.
Castillo was dismissed by the bank in October 2005 amidst charges of fraud
and concealment of the actual financial condition of the bank. He is
currently on trial in the Criminal Court of the National District of the
Dominican Republic for violations of the securities laws, the Monetary and
Financial Law, as well as charges of criminal fraud and violations of the
money laundering laws.
The civil verdict comes after months of delay stemming from requests for
appeal and additional time.
Patton Boggs LLP
Based in Washington, D.C., Patton Boggs is a leader in public policy,
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SOURCE Patton Boggs LLP
