Insurance payments to CREA depositors begin Friday as Coop managers face criminal charges

Ecuador’s Deposit Insurance Corporation (Cosede) will begin issuing payments to CREA cooperative account holders Friday following the conclusion of the liquidation process conducted by the Superintendent of Popular and Solidarity Economy (SEPS). Payments of up to $32,000 can be collected at the Cuenca-based Jardín Azuayo Credit Union and at BanEcuador through September 11 based on cedula numbers.

CREA members outside a branch office in Cuenca.

Account balances above $32,000 will be repaid at a later date, according to SEPS.

In announcing the payment schedule, SEPS Superintendent Christina Murillo, said that an investigation has revealed possible criminal activity on the part of CREA managers Patricio B. and Patricia P. “We have turned our findings over to state prosecutors, which is standard procedure in the case of failures of financial institutions,” she said. “In particular, we believe that acts of embezzlement may have been committed by CREA management.”

According to Murillo, CREA failed to follow a 2022 SEPS directive to maintain cash reserves of 9% as required by law. “In three years, the coop failed to increase its cash-on-hand balance despite repeated warnings,” she said. “It is our opinion that illegal activities occurred that prevented the coop from achieving this requirement.”

Payments to account-holders will be made based on the last digit of their cedulas. Those with cedulas ending in 1 can receive payment on Friday, August 29; 2 on September 1; 3 on September 2; 4 on September 3; 5 on September 4; 6 on September 5; 7 on September 8; 8 on September 9; 9 on September 10; and 0 on September 11.

Accounts registered with passport numbers and other forms of identification can collect payment September 11.

Cosede announced Wednesday it had transferred $68 million to Jardín Azuayo Savings and Credit Union and at BanEcuador to cover repayment of accounts.

In her comments Wednesday, Murillo said she believed all CREA members with accounts of more than $32,000 would be fully repaid.