Latest news with #PabloCarrasco
eNCA
4 days ago
- Business
- eNCA
Founder detained after Uruguay cow fund goes belly up
MONTEVIDEO - An Uruguayan court ordered pre-trial detention for the founder of a collapsed suspected Ponzi scheme that encouraged investment in cattle in a country with three times as many cows as people. Conexion Ganadera went belly-up last year owing tens of millions of dollars to thousands of investors. A court ordered one of its founders, Pablo Carrasco, to be detained until February 10 next year while investigations continue into fraud and money laundering, the prosecutor's office said. House arrest was ordered for his wife Ana Iewdiukow, along with the widow of another founding partner. Uruguay is cattle country: beef is its main export commodity and there are more than three cows for each human inhabitant -- the highest number per capita in the world. Uruguay also vies with neighbour Argentina for the position of top beef consumer per capita -- at more than 40 kilograms per person per year. Media reports say Conexion Ganadera took people's money with promises to invest it in cattle, with profits to be split with the farmers. Much of the money was allegedly used for other purposes, and prosecutors suspect it may have been a Ponzi scheme. Two other firms that made similar investment promises have also collapsed in Uruguay -- with about 7,000 investors affected in the three cases. "It is still unknown where all the money is," prosecutor Enrique Rodriguez said. "The people call it fraud, but it's theft -- they stole our savings," investor Silvia Bello told AFP at a protest outside the court in Montevideo. The court ordered real estate and vehicles worth some $16-million to be frozen in the Conexion Ganadera case -- a fraction of the estimated $250-million that has gone missing.
The Sun
4 days ago
- Business
- The Sun
Uruguay cattle investment scam founder detained in $250M fraud case
MONTEVIDEO: An Uruguayan court has ordered the pre-trial detention of Pablo Carrasco, founder of the suspected Ponzi scheme Conexion Ganadera, which collapsed last year owing millions to investors. The scheme promised profits from cattle investments in a country with three cows per person. Prosecutors confirmed Carrasco will remain detained until February 10, 2026, while investigations into fraud and money laundering continue. His wife, Ana Iewdiukow, and the widow of another partner were placed under house arrest. Uruguay, known for its beef exports and high per-capita cattle numbers, has seen multiple investment scams targeting agriculture. Media reports allege Conexion Ganadera diverted funds meant for livestock, possibly operating as a Ponzi scheme. Two similar firms have also collapsed, affecting 7,000 investors. 'It is still unknown where all the money is,' said prosecutor Enrique Rodriguez. Authorities have frozen $16 million in assets, a fraction of the missing $250 million. Investor Silvia Bello told AFP, 'The people call it fraud, but it's theft—they stole our savings.' Protests erupted outside the Montevideo court as victims demand justice. - AFP
Mint
5 days ago
- Business
- Mint
Uruguayan court opens criminal probe into cow bond fraud
MONTEVIDEO, July 17 (Reuters) - A Uruguayan court on Thursday formally launched a criminal investigation into Conexión Ganadera, a local livestock investment firm accused of defrauding thousands of investors in a multi-million dollar "cow bond" scheme. The move marks a significant step forward in one of the biggest financial scandals in Uruguay, where cows outnumber people. Conexión Ganadera was the largest of three cattle investment companies that collapsed in late 2024 after attracting nearly 6,000 people or investor pools with promises of returns from livestock ownership. To date, estimated losses from the three companies amount to roughly $350 million - the majority, some $250 million, from Conexión Ganadera. "If we're here, it's because the victims weren't paid," Financial Crimes Prosecutor Enrique Rodríguez told the courtroom. Conexión Ganadera co-founder Pablo Carrasco has been charged with fraud and money laundering. The judge ruled he posed a flight risk and should be detained while awaiting trial. A trial date has not been set. Carrasco's wife, Ana Iewdiukow, and Daniela Cabral, the widow of his late business partner, were accused of fraud and placed under house arrest. All three deny the allegations. The other co-owner, Gustavo Basso, killed himself in a car crash in November 2024, shortly before the company's collapse. Dozens of people gathered outside the courthouse in Montevideo on Thursday to demand justice. "Many families have been financially destroyed over this," said 47-year-old Doriana Esposito. Evidence suggests that the money received by the firm over more than two decades was not always invested in livestock and circulated without any legal oversight through a network of companies that diverted funds for other purposes, the prosecution said. Several investors have been unable to find the animals that contracts show they own, making up a herd of "phantom cows" that could number over 700,000 head of cattle. The prosecutor said the criminal probe would help determine "with greater precision" the amount of missing livestock. (Reporting by Lucinda Elliott in Montevideo. Additional reporting by Martín Varela. Editing by Rosalba O'Brien)
