Banks ‘shocked’ by $250 million
Carlos Rohm, vice-chairman of Banco General de Negocios (BGN), is facing charges of fraud in Argentina, based on evidence mainly supplied by his brother, Jose Rohm, the chairman of BGN.
Carlos Rohm has said in court that Argentina now is as bad as Russia under Stalin or Germany under Hitler.
An Argentine court deposition obtained by Euromoney says that Jose Rohm alleges that his brother used around $250 million to pay off debts owed by BGN in an offshore Panamanian account.
The money, according to a source at a foreign investor in BGN, was deposited by Argentine small investors in a Uruguayan bank, Compania General de Negocios (CGN), also run by the Rohms. Another source says that employees of BGN were among those who deposited money. BGN declines to comment.
The foreign investor source says: "It appears there were two entities with the same name".