Bancrédito Seeks Asset Recovery After Case Closure

Bancrédito Holding Corporation, the sole shareholder of Bancrédito International Bank & Trust Corporation, has started judicial proceedings in Puerto Rico and Florida over the management of bank assets during liquidation. The action follows the closure of the case against founder Julio Herrera Velutini after President Donald J. Trump granted him a full and unconditional pardon. BHC is seeking court review of asset management, the legal advice it received during negotiations with the Financial Crimes Enforcement Network, and the return of remaining assets to shareholders. The company says the bank had repaid all depositors and was solvent during liquidation.

Case Closure And Asset Claims

Federal Judge Silvia L. Carreño dismissed the case last January after the co-defendants accepted the pardon, according to BHC. The case began with public corruption accusations, was later reduced to a minor campaign finance violation, and became legally void after presidential clemency.

White House sources told Fox News that the case was an example of political persecution. BHC’s proceedings focus on the handling of assets in liquidation and whether actions taken during the process require a judicial remedy.

Luis Zapata, CEO at BHC, stated:

“With the closure of the criminal case and the presidential pardon that fully restores our founder's legal standing, we are confident that justice will once again prevail and the assets will return to their rightful owners.”

Lawsuits Over Legal Advice

BHC has filed a lawsuit against McConnell Valdés LLC, Holland & Knight LLP, and McDermott Will & Schulte LLP. The complaint alleges negligence and professional malpractice in legal advice provided during negotiations with FinCEN.

According to BHC, the attorneys advised the bank to accept a Consent Order that resulted in an unfounded multimillion-dollar fine, despite prior assessments indicating that the institution’s compliance programs were adequate. The complaint also alleges that the attorneys failed to raise available arguments and advised the bank to accept facts they knew to be inaccurate.

“Our objective is to protect the assets and institutional legacy that were compromised during this process,”

Liquidation Sale Dispute

In 2023, BHC filed a complaint against Driven Administrative Services, the trustee appointed in Puerto Rico to oversee the liquidation. The company claims the sale of assets, including artwork belonging to the trust that owns the bank and valued at more than $22 million, was unauthorized and unnecessary.

BHC says the trustee’s reports showed the bank was solvent after repaying all depositors. Under the liquidation agreement, the remaining assets were to be returned to shareholders.

Focus On Shareholder Assets

The proceedings seek to establish whether asset and legal decisions made during the liquidation process complied with the law. BHC is pursuing the return of assets it says should have remained available to shareholders after depositors were repaid.