The Central Bank of Uruguay (BCU) dismissed an appeal for revocation that had been filed Sarah Goldring after the entity defined the dissolution and liquidation of the stock brokerage Custodia de Valores Mobiliarios (CVM).
On January 24, Goldring had filed an appeal with the BCU in which he alleged that the liquidation of CVM had occurred in “arbitrary shape” that “the transfers of securities and cash balances of Custody of Securities Mobiliarios are erroneously provided for, with respect to clients with a positive balance” and that “the deterioration of the portfolio under management is omitted due to the negligent act of the Montevideo Stock Exchange in his role as intervener.
The BCU pointed out that “it is not correct to assign responsibility for the losses suffered by Custody of Securities Mobiliarios (CVM) clients” to the Central Bank or the Montevideo Stock Exchange “for their actions in the intervention since it was Sara Goldring who –in use of the mandate of free administration– decided until July 5, 2022 the investments of its clients that generated such losses“.
As stated in the opinion, in the intervention “only interest and amortizations were charged, the transfers requested by clients who operated on their own account were authorized and the positions in put options sold that were still open were closed.”
Sara Goldring is accused in court of fraud and misappropriation after her company had losses in the order of US$ 100 million.
On December 30, 2022, the Central Bank decided to liquidate the company and appointed the company as delegated liquidator. Trade Defense League.
For their part, in February a group of affected customers had challenged the sanction of BCU against the company, for the decision of “cover only 0.7%” of the balances affected in cash.
“Cash from certain customers was used illegally by Custody of Securities Transfers to keep the securities of other customers, who will receive their securities, while the former with cash balances they will receive only 0.7% of the money they own, while said money no longer exists to datehaving been used for hold securities”said the lawyer Laura Capalbo, partner of the Bragard study.
