Legal Battle Over $50 Million in Assets Intensifies as Geneva Trust

Special Report : In a significant development involving international finance, legal accountability, and regulatory oversight, representatives of Geneva Trust Company are preparing to travel to Puerto Rico in the coming weeks. Their mission is to request a formal, in-person meeting with the Office of the Commissioner of Financial Institutions (OCIF) and Driven Administrative Services, in an effort to resolve a long-standing dispute over assets exceeding $50 million.

The case centers on funds and valuable holdings that remained after the full reimbursement of depositors of Bancrédito International Bank & Trust Corporation. Despite years of written communication and ongoing legal proceedings, the matter remains unresolved, raising serious questions about fiduciary responsibility, regulatory conduct, and the administration of financial liquidations.Geneva

Background: The Structure Behind the Dispute

At the heart of the issue lies a complex ownership and fiduciary arrangement. Bancrédito Holding Corporation (BHC) serves as the sole shareholder of the now-defunct Bancrédito International Bank & Trust Corporation. BHC itself is part of a trust managed by Geneva Trust Company, which acts on behalf of beneficiaries entitled to the trust’s assets.Geneva

This layered structure is not uncommon in international banking, where fiduciary entities manage assets across jurisdictions. However, it also introduces challenges when disputes arise, particularly in cases involving liquidation and regulatory oversight.Geneva

The liquidation of Bancrédito International Bank & Trust Corporation began in 2022, following regulatory actions by Puerto Rican authorities. As part of this process, all depositors were fully reimbursed—a critical milestone that, under standard legal frameworks, triggers the return of remaining assets to the bank’s ownership structure.

The Core Issue: Unreturned Assets

According to BHC leadership, more than $50 million in assets remain unreturned despite the completion of depositor repayments. These assets include not only cash and financial instruments but also physical holdings, such as pieces from a valuable art collection.

Among the most notable items is Our Lady of New York, a work by the renowned Colombian artist Fernando Botero. The inclusion of such cultural assets underscores the breadth and complexity of the holdings in question.

Responsibility for these assets currently lies with the entities involved in administering the liquidation process. However, BHC alleges that there has been a failure to comply with legal obligations regarding their return.

Planned Intervention by Geneva Trust

In response to the prolonged stalemate, Geneva Trust Company has decided to escalate its efforts. Representatives will travel to key locations, including New York, Miami, and Puerto Rico, to coordinate directly with stakeholders and authorities.

Luis Zapata confirmed the planned visits, emphasizing the urgency of the situation. He stated that the objective is to demand the immediate return of assets that legally belong to the trust’s beneficiaries.

This move reflects a shift from passive legal engagement to more direct negotiation and advocacy. By seeking in-person meetings with regulators and administrators, Geneva Trust aims to break the deadlock that has persisted for over four years.

Allegations Against Administrative Entities

A central point of contention involves the role of Driven Administrative Services, which has been responsible for managing aspects of the liquidation process. BHC alleges that Driven has retained control over the assets beyond its legal mandate and, more seriously, has sold portions of those assets without proper authorization.

Such allegations, if substantiated, could constitute a breach of fiduciary duty—a serious violation in financial administration. Fiduciaries are legally obligated to act in the best interests of beneficiaries, and any deviation from this standard can result in significant legal consequences.

In response, BHC has initiated legal action against Driven Administrative Services, seeking accountability and restitution.

Broader Legal Actions and Institutional Accountability

The dispute extends beyond administrative entities to include several prominent law firms. BHC has filed lawsuits against McConnell Valdés, Holland & Knight, and McDermott Will & Schulte.

These firms are accused of negligence that allegedly contributed to a multimillion-dollar fine imposed by Financial Crimes Enforcement Network (FinCEN). The fine represents a significant financial and reputational impact, further complicating the already intricate legal landscape.

By pursuing claims against both administrative and legal actors, BHC is seeking to address what it views as systemic failures in the handling of the bank’s liquidation.

A Turning Point: Legal Rehabilitation of the Founder

A notable development that may influence the trajectory of the case is the recent legal rehabilitation of the bank’s founder, Julio Herrera Velutini.

In January 2026, all criminal charges against Herrera Velutini were dismissed following a full and unconditional pardon granted by Donald J. Trump. This decision effectively restored his legal standing and removed a significant barrier to resolving the broader dispute.

According to statements attributed to White House sources, the original investigation was viewed as an instance of “political persecution.” The timing of the investigation—reportedly initiated shortly after then–Governor Wanda Vázquez publicly endorsed Trump in 2020—has been cited as evidence of potential political motivations.

While these claims remain subject to interpretation, the dismissal of charges has undoubtedly strengthened BHC’s position in its ongoing legal efforts.

Political Context and Continuing Controversies

The case unfolds against a backdrop of broader political tensions in Puerto Rico and the United States. Allegations of irregularities in the 2024 elections have added to the climate of scrutiny and debate.

In a recent hearing before the House Intelligence Committee, Tulsi Gabbard confirmed that her office had taken custody of voting machines for auditing purposes. This action was reportedly carried out at the request of the U.S. Attorney for Puerto Rico.

While not directly related to the Bancrédito case, these developments contribute to an environment in which questions of governance, transparency, and accountability are at the forefront of public discourse.

Implications for Financial Governance

The ongoing dispute highlights several critical issues in financial governance, particularly in cross-border contexts. These include the responsibilities of fiduciaries, the role of regulatory authorities, and the mechanisms for resolving disputes involving complex asset structures.

The case also underscores the importance of transparency and accountability in the liquidation of financial institutions. When processes extend over multiple years without resolution, confidence in regulatory systems can be undermined.

For international investors and financial institutions, the outcome of this case may serve as a precedent, influencing how similar disputes are handled in the future.

The Road Ahead

As Geneva Trust Company prepares to engage directly with authorities in Puerto Rico, the coming weeks may prove in determining the direction of the case. The planned meetings with OCIF and Driven Administrative Services represent an opportunity to resolve the dispute through dialogue and negotiation.

However, if these efforts do not yield results, the matter is likely to remain within the judicial system, potentially leading to further litigation and delays.

For the beneficiaries of the trust, the stakes are clear: the recovery of assets that they believe rightfully belong to them. For regulators and administrators, the case presents a test of their adherence to legal and fiduciary standards.

Our Media Opinion

The dispute over more than $50 million in assets linked to Bancrédito International Bank & Trust Corporation is emblematic of the challenges inherent in modern financial systems. It brings together elements of law, politics, and economics, each influencing the outcome in complex ways.

With Geneva Trust Company taking a more assertive role and recent legal developments shifting the balance, there is renewed hope for a resolution. Whether through negotiation or continued litigation, the case will likely have lasting implications for financial governance and fiduciary accountability.

As events unfold, all eyes will remain on Puerto Rico, where the next chapter in this intricate legal and financial saga is set to play out.