Our Objective is to Expose Coacecss RL and the ensuing Liquidation for the True Scam it is, in the "Eyes" of the World: http://laestrella.com.pa/panama/nacional/coacecss-estuvo-punto-emitir-deuda-millonaria/23825629
Cooperativa de Ahorro y Créditos Empleados de la Caja del Seguro Social, R. L. is one of the oldest and largest Cooperativas in Panama. The Social Security System (Panama has a Social Medicine System that has State run Hospitals & Clinics’) is one of the largest employer’s and all of it employees where eligible to join the Co-op. In 2010 the Co-op had over 15000 members, and programs for savings, loans, insurance, and social development. Coacecss had been operating for over 50 years, with no problems.
Then came along Offshore CD Network, headed by Gilbert Straub of Watergate fame. He fled the USA after being involved with the “Watergate”, as the “Bag Man” for the payoff, to avoid prosecution. He obtained residency in Panama and was involved with Robert Vesco and ran several questionable Financial Business’s. He struck up a relationship with Coacecss through its management, to recruit Foreign Funds (mostly Gringos) with the promise of High Interest rates on CD’s. They set up a website “Offshore CD Network” that led one to believe that Coacecss was actually a Government run Co-op, not one that was run by amateurs and questionably motivated people. The website touted the “Safety” of investing in Co-ops, versus banks. They stated that a “Panamanian” Co-op had never failed. They hired “salespeople” and payed commissions for opening new foreigner accounts. The CD rates started out modest, but high compared to the low interest environment of the day. But, they kept increasing to attack more deposits. Soon, rates as high as 9%+ where available and Offshore CD Network & the salesmen where paid commissions to 3%+. So, it is obvious to a laymen financially inclined person, at 12%+ cost of the CD’s, plus operating expenses, the Co-op would need a solid and current loan portfolio paying at least 18%
The “salesmen” did really good, more than doubling the Co-op’s savings portfolio from $33.8M in 2010 to $81.3M in 2012, more than 90% of the savings belonging to foreign accounts owners. The “cash on hand” increased from $4.M in 2010 to $23.7M in 2011. Of the cash in 2011, $22M was in a local bank earning 2%. The Loan Portfolio increased from $11.8M in 2010 to $23.3M in 2011. But, the problems had already begun, there where $5M in “Non performing loans”, with only $500K in reserves for non performing loans. The Co-op’s Net Operating profit nose dived from $1.1M in 2010 to $344K in 2011. They were taking in cash much faster than they could loan it out. In 2011 the average laborer’s monthly wage was $350 and the “majority” of the Co-op’s members, who would seek loans, fall into this group.
To be continued.