No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeArchiveTico accountant sentenced to 4.5 years in prison in U.S. insurance scam...

Tico accountant sentenced to 4.5 years in prison in U.S. insurance scam trial

A U.S. court in Richmond, Virginia, on Friday sentenced Costa Rican accountant Jorge Luis Castillo to 4.5 years in a federal prison for cooking the books of a company owned by businessman Minor Vargas as part of a $485 million life insurance scam, Business Week magazine reported.

Castillo received a reduced sentence after testifying against Vargas in the trial. Castillo admitted to fraudulent accounting practices on behalf of Provident Capital Indemnity Ltd., and apologized for his role in the global scheme that claimed thousands of victims, including many who lost their life savings.

“I regret from the bottom of my heart the consequences of this unscrupulous scheme of which I was a part,” Castillo told U.S. District Judge John A. Gibney.

Castillo is the ninth and final defendant sentenced in Virginia in a pair of related cases involving the life settlement industry. Most pleaded guilty, but Vargas and two principals of Houston-based A&O went to trial and were convicted.

In October, Vargas was sentenced to 60 years in prison for the crimes of fraud and money laundering. He was president and owner of Brujas Football Club and Club Deportivo Barrio Mexico, both in Costa Rica. He also was president of powerhouse soccer club Saprissa, and the owner of publishing company Icon Group and a synthetic turf business.

Trending Now

Costa Rica Central Bank Urged to Cut Rates and Act on Exchange Rate Collapse

Economists called on the Central Bank of Costa Rica to adopt measures that reverse the sharp drop in the dollar exchange rate. The local...

Costa Rica Faces New Tariff Challenges as Trump Enacts 10% Levy on Imports

President Donald Trump declared a new 10% tariff on all U.S. imports today, just hours after the U.S. Supreme Court invalidated his prior tariff...

Costa Ricans Embrace Global Entry Program

Costa Ricans show strong interest in the Global Entry program, which allows faster entry into the United States. Two months after its launch here,...

High Dollarization Poses Risk to Costa Rica’s Loan Portfolio

Moody's Local warned that the high dollarization of credit in Costa Rica could put pressure on portfolio quality due to the large proportion of loans...

Venezuela parliament unanimously approves amnesty law

Venezuela's National Assembly on Thursday unanimously approved a long-awaited amnesty law that could free hundreds of political prisoners jailed for being government detractors.  But...

One-Lane Travel Returns to Costa Rica’s Tárcoles Bridge

Drivers heading along Route 34 should prepare for delays starting Monday, as traffic on the bridge over the Tárcoles River shifts back to one...
L. Arias
L. Arias
Reporter | The Tico Times |
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica