

Currently released so far... 12689 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/08
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
2011/05/18
2011/05/19
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AF
ASEC
AR
AEMR
AMGT
AE
AU
AID
AORC
APER
AS
AM
AFIN
AMED
AJ
AGR
ACOA
ANET
ASIG
ABLD
AL
AA
APECO
AGAO
AY
AGMT
APEC
AINF
AG
ACS
AECL
AFFAIRS
ABUD
ASUP
ADANA
AADP
AMCHAMS
ARF
ASEAN
ADPM
ATRN
ALOW
APCS
ADCO
ACAO
AORG
AROC
AO
AODE
ACABQ
AX
AMEX
AFGHANISTAN
AZ
AND
ARM
AQ
ATFN
AMBASSADOR
ACBAQ
AFSI
AFSN
AC
AUC
ASEX
AER
AVERY
AGRICULTURE
ASCH
AFU
AMG
ATPDEA
ASECKFRDCVISKIRFPHUMSMIGEG
AORL
ADM
AN
AIT
BU
BR
BL
BO
BA
BB
BG
BM
BBSR
BH
BEXP
BK
BD
BTIO
BT
BE
BY
BF
BX
BP
BRUSSELS
BILAT
BIDEN
BC
BMGT
BWC
BN
BTIU
CH
CG
CF
CU
CE
CVIS
CASC
CO
CS
CA
CIDA
CBW
CW
CMGT
CI
CODEL
CY
CPAS
CJAN
CD
CWC
CDG
CIA
CL
CROS
CAPC
CTR
CT
CR
CBSA
CEUDA
COM
CFED
CV
CACS
CARSON
CLINTON
CN
CONS
CM
CAC
CIC
COPUOS
CDC
CONDOLEEZZA
CICTE
COUNTER
COUNTRY
CBE
CKGR
CHR
CVR
COUNTERTERRORISM
CITEL
CLEARANCE
COE
CARICOM
CB
CSW
CITT
CACM
CDB
CJUS
CTM
CAN
CLMT
CBC
CNARC
CIS
EG
EZ
EUN
ECON
ETRD
ECPS
EFIN
ENRG
ETTC
EPET
EINV
EAID
EAIR
EWWT
EU
EAGR
EC
ELAB
EIND
EN
EMIN
ESENV
ENNP
EFIS
ELTN
ET
ECIN
EFTA
ES
EINT
EI
ENGR
ETRDEINVECINPGOVCS
ENVI
ETRDECONWTOCS
ECINECONCS
ELN
ELECTIONS
ENVR
EXTERNAL
EXIM
ETRO
ENIV
ESA
ER
EK
EUR
EFINECONCS
EUMEM
EUREM
EPA
ERNG
ENERG
ECA
ETRC
EINVEFIN
ETC
EAP
ECONOMY
EINN
ECONOMIC
EXBS
ECUN
ENGY
ECONOMICS
EIAR
EINDETRD
ECONEFIN
EURN
EDU
ETRDEINVTINTCS
ECIP
EFIM
EAIDS
EREL
EINVETC
ECONCS
ETRA
EAIG
EUC
ERD
ETRN
EINVECONSENVCSJA
EEPET
EUNCH
IS
IZ
IR
IC
IO
IN
ID
IGAD
IT
ILC
IAEA
ITU
ICAO
IMO
IBRD
IMF
ICJ
IAHRC
ITF
INRA
INRO
IWC
IQ
IV
ICRC
ICTY
INRB
IEFIN
ILO
ITRA
ITALY
IBET
ISRAELI
IL
INTELSAT
IRC
IDP
ICTR
IRAQI
IPR
IIP
INMARSAT
ITPGOV
ITALIAN
INTERNAL
IRS
IA
INTERPOL
IEA
INR
IZPREL
IRAJ
IF
ITPHUM
ISRAEL
IACI
INDO
IDA
ISLAMISTS
KSPR
KNNP
KWBG
KAWK
KISL
KPAO
KN
KS
KIPR
KCRM
KDEM
KIRF
KJUS
KHLS
KSCA
KOMC
KAWC
KV
KFRD
KWMN
KTIP
KPWR
KSUM
KGHG
KTIA
KTFN
KIRC
KCOR
KACT
KMDR
KGIC
KOLY
KUNR
KIDE
KMPI
KPKO
KCFE
KVPR
KRAD
KPAL
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KTEX
KTDB
KFSC
KZ
KSEP
KFLU
KE
KU
KPLS
KRVC
KRIM
KSTH
KG
KFLO
KPOA
KICC
KDDG
KPRV
KTBT
KBCT
KSAF
KMOC
KDRG
KBIO
KREC
KSTC
KVRP
KBTR
KMIG
KENV
KNSD
KCGC
KWAC
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KWMM
KPRP
KNEI
KPAI
KO
KVIR
KX
KMCA
KCRS
KMFO
KID
KCIP
KNAR
KR
KCRCM
KBTS
KSEO
KHDP
KFIN
KOCI
KGIT
KNUP
KPAONZ
KNUC
KNNPMNUC
KERG
KSCI
KTLA
KHIV
KCSY
KTRD
KMRS
KNPP
KJUST
KCMR
KTER
KRCM
KCFC
KSAC
KCHG
KREL
KFTFN
KCOM
KLIG
KDEMAF
KAID
KGCC
KICA
KHUM
KSEC
KPIN
KESS
KDEV
KWWMN
KOM
KWNM
KRFD
KRGY
KIFR
KWMNCS
KPAK
KOMS
KHSA
MPOS
MOPS
MARR
MTCR
MNUC
MASS
MX
MCAP
MAR
MTRE
MASC
MK
MG
MTCRE
MI
MD
MA
MO
MY
MU
ML
MRCRE
MAS
MEDIA
MC
MR
MIL
MW
MARAD
MAPP
MZ
MP
MOPPS
MTS
MLS
MILI
MEPN
MEPI
MEETINGS
MERCOSUR
MT
MCC
MIK
MAPS
MV
MILITARY
MDC
MEPP
MASSMNUC
MUCN
MQADHAFI
NATO
NG
NL
NZ
NT
NW
NO
NU
NS
NPT
NASA
NI
NK
NSG
NE
NORAD
NAFTA
NP
NATIONAL
NSSP
NSF
NA
NGO
NV
NR
NDP
NIPP
NZUS
NH
NC
NEW
NRR
NAR
NATOPREL
NPG
NSC
NPA
NSFO
OPDC
OPRC
OEXC
OTRA
ODIP
OIIP
OVIP
OPIC
OPCW
OAS
OREP
OSCE
OSCI
OES
OFDP
OECD
OCS
OIC
OPAD
OVP
OHUM
OFFICIALS
OIE
OTR
OMIG
OSAC
OBSP
OFDA
ON
OCII
PREL
PGOV
PARM
PINR
PTER
PHUM
PK
PREF
PM
PHSA
PA
PINS
PE
PBTS
PCI
PO
PL
POGOV
PAK
PEL
PGIV
PROP
PP
PBIO
POL
POLITICS
POLICY
PINL
PBT
PMIL
POV
PTBS
PG
POSTS
PALESTINIAN
PROV
PNAT
PINF
PRL
PAS
PDOV
PRAM
PREO
PAHO
PHUMPGOV
PAO
PREFA
PSI
POLITICAL
PAIGH
PARMS
PROG
PTERE
PRGOV
PORG
PS
PGOF
PKFK
PSOE
PEPR
PPA
PINT
PMAR
PRELP
PNG
PFOR
PUNE
PGOVLO
PHUMBA
PSEPC
PNR
POLINT
PGOVE
PHALANAGE
PARTY
PDEM
PECON
PGOC
PY
PLN
PHUH
PF
PHUS
PU
PARTIES
PCUL
PGGV
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PHUMPREL
RS
RU
RW
REACTION
RCMP
RSO
RO
RP
ROOD
RM
ROBERT
RICE
REGION
RSP
RF
RIGHTS
RIGHTSPOLMIL
RUPREL
RELATIONS
RFE
REPORT
SY
SP
SOCI
SMIG
SNAR
SCUL
SC
SU
SO
SI
SENV
SZ
SW
SA
SR
SF
SEVN
SN
STEINBERG
SEN
SG
SYR
SWE
SK
SH
SNARCS
SAARC
SNARIZ
SPCE
SARS
SNARN
SCRS
SYRIA
SL
SENVKGHG
SAN
ST
SIPDIS
SSA
SPCVIS
SOFA
SANC
SHI
SHUM
SIPRS
TSPA
TSPL
TU
TBIO
TRGY
TPHY
TS
TP
TW
TBID
TI
TF
TZ
TD
TT
TN
TNGD
TC
TX
TH
TL
TIP
THPY
TV
TK
TERRORISM
TO
TRSY
TURKEY
TINT
TFIN
TAGS
TR
US
UNSC
UNGA
UK
UP
UNCHC
UN
UNMIK
UNCSD
UY
USTR
USOAS
UNHRC
UNFCYP
UG
UNAUS
UNESCO
UNIDROIT
UNO
UV
UNHCR
USUN
UZ
USNC
UNCHR
UNCND
UNEP
USEU
USPS
USAID
UE
UNVIE
UAE
UNDP
UNODC
UNCHS
UNFICYP
UNDESCO
UNC
UNPUOS
UNDC
UNICEF
Browse by classification
Community resources
courage is contagious
Viewing cable 05GUAYAQUIL1334, PYRAMID SCHEME COLLAPSES, THOUSANDS LOSE LIFE
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #05GUAYAQUIL1334.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
05GUAYAQUIL1334 | 2005-12-02 20:49 | 2011-05-02 00:00 | UNCLASSIFIED | Consulate Guayaquil |
This record is a partial extract of the original cable. The full text of the original cable is not available.
UNCLAS SECTION 01 OF 03 GUAYAQUIL 001334
SIPDIS
E.O. 12958: N/A
TAGS: KCRM MOPS PGOV SOCI KCOR KFRD EFIN EC
SUBJECT: PYRAMID SCHEME COLLAPSES, THOUSANDS LOSE LIFE
SAVINGS
¶1. Summary: The death of Jose Cabrera Roman, a notary in
the City of Machala in El Oro province, exposed and
precipitated the collapse of a massive pyramid scheme he
had run for over a decade. Reports indicate that
anywhere from 26,000 to 37,000 people made deposits with
Cabrera, reportedly totaling in the hundreds of millions
of dollars, in return for monthly interest payments of
seven to ten percent. Cabreras clients/victims include
individuals from all walks of life and every province in
Ecuador, and the public outcry (for protection from the
victims, for prosecution of the beneficiaries) in the
month since his death has been vocal and persistent.
The trail of those who invested in this illegal
operation, were aware of it but took no action to halt
it, or tried to steal their money back after Cabrera
died, continues to lead higher in civilian government,
police and military ranks fueling a full-blown scandal
of major proportions which has thus far claimed victims
mainly in the military. End summary.
The Way it Worked
¶2. It appears that at some point in the mid-1990s,
Machala-based notary Jose Cabrera Roman began his
pyramid or Ponzi scheme taking in deposits and paying
interest rates from seven to ten percent per month,
which, calculated on a yearly basis, would be about nine
times the legal maximum rate established by the Central
Bank of Ecuador. His clientele grew over the years, and
at the time of his death, he had an estimated 26,000-
37,000 depositors and his staff was seeing about 400
people a day. Press accounts suggest that the average
deposit was $13,000 dollars although there were many
including military and police who reportedely had
deposits in excess of one hundred thousand dollars.
Ecuadors highly regarded news magazine, "Vistazo,"
claims that at the time of his death, Cabrera may have
had $320 million in his possession.
¶3. Attracted by the high interest rates, past banking
failures and the confidence-inspiring longevity of the
operation, people and groups from throughout Ecuador
were depositing their life savings (or mortgaging their
properties) to buy into this get-rich-quick scheme.
Individually and by groups, farmers, soldiers, police,
families receiving remittances from abroad, rich and
poor alike were clients of notary Cabrera. Some
reportedly quit their jobs and simply lived off the
interest payments. The scheme was able to finance
itself as long as the money base was expanding and more
deposits were coming in. Although there is much
speculation about money laundering, counterfeiting or
possible investments that generated profit, none has
been confirmed to date and there may be no more to this
operation than the scam itself.
The House of Cards Falls
¶4. Press accounts describing Cabrera as being in the
company of an eighteen year-old woman at the time of
death added spice to the incredible story that unfolded.
He was buried and mourned by many in Machala and for a
few weeks his "business" continued. The notarys son
and daughter, who had no apparent direct connection to
the scheme previously, took over the business and
assured people that things would continue as before. An
Ecuadorian attorney who has spoken to the Cabrera family
in the U.S. told Guayaquil Consul General that the
family had no real knowledge of the operations of
Cabreras business and they had been shocked to find a
room in his office literally filled with cash, and
hundreds of people gathered outside the offices
s
demanding their money. According to the attorney, they
very quickly realized this was far beyond their ability
to manage and they were fearful for their safety. The
lawyer also stated Cabreras children claim they were
never given any of this money and took nothing from the
money-filled room, if for no other reason than fearing
the crowds outside who were searching anyone exiting the
building.
Family Connections
¶5. Cabreras wife, Ana Teresa Gallardo Moscoso, left
for the U.S. on November 6 and her two children, forty-
year-old Jose Cabrera Gallardo and thirty-five-year-old
daughter, Carolina Cabrera Gallardo, departed the
following day for the safety of a relative's house in
Connecticut. Despite speculation, no hard evidence has
yet surfaced that the family members were ever part of
the scam or were enriched by it. Credit checks done by
the Consulate confirm that neither of the two children
has obvious wealth in Ecuador. Jose Cabrera Gallardo
o
recently married but lived in his parents home. The
daughter appears to have a legitimate construction
business, and she is current on repaying a bank loan she
took out for her business. The Cabrera residence in
Machala appears to be nothing more than an upper middle-
class home, and the Guayaquil attorney who met with the
family in Connecticut told Consul General that the
family members do not wish to stay in the U.S. because
it is too expensive.
Chaos breaks out in Machala
¶6. When the news of the familys departure hit, chaos
ensued. On November 14, a frenzied crowd in Machala dug
up the body Cabrera after a rumor surfaced that he had
not died but had instead fled the country. TV news
viewers were provided with graphic footage of the corpse
being poked with sticks by crowd members trying to
determine if the body was really Cabrera and not a
dummy. The fact that onlookers were holding
handkerchiefs to their noses supported the view that the
e
cadaver was real. Jilted clients of the ex-notary have
continued to turn out in hundreds to demand their money
back by marching through the streets, throwing stones at
the radio station, calling for the ouster of the Mayor
and Governor of Machala and demanding that the
government of Ecuador intervene and make restitution.
Police and military intervened, but their apparent
motivation was more to try to get their hands on as much
of the money as they could before it disappeared than to
restore order. On November 16, the government of
Ecuador declared a state of emergency in Machala but the
atmosphere of insecurity has continued.
Military and police officials involved in the scheme
¶7. Cabreras client list was impressive, and not only
for its length. Newspaper accounts of the case reveal
that depositors represented a cross-section of
Ecuadorian society. Nicolas Castro Patino, a candidate
for the Supreme Court, had deposited $15,000 with
Cabrera, which resulted in his disqualification as a
candidate. A major Ecuador daily newspaper estimates
that 20% of Ecuador's Armed Forces personnel (about
6,000 people) gave Cabrera money. Teodoro Codero
Jaramillo, president of the Supreme Court of Machala,
resigned from his post when it was discovered he had
given money to Cabrera after initially claiming he had
no knowledge of the scheme. Congressional deputy
Guillermo Haro is leading an investigation of the
scheme, promising to reveal military and civilian
political participants by January.
¶8. In another twist, on November 11 two military
flights, including the Ecuadorian equivalent of Air
Force One, were dispatched to Cabreras office to
collect personal deposits made by high military
officials in Quito. Upon arrival, the military
officials clashed with police guarding Cabreras office.
A police officer sent to the office of the ex-notary to
recover money was caught stuffing $25,000 into his
bullet-proof vest. During the early hours of November
r
12, military Special Forces soldiers were reportedly
taking boxes and bags of money out of Cabreras office
building after again clashing with police who were also
taking cash away. Machala Attorney General Alberto
Caiviguana confiscated $346,000 from various civilian,
police and military looters. As of December 2, 23
arrests have been ordered of various police and military
officials for their involvement in the scheme or their
attempts to recover (or simply steal) money. The
Machala police chief and his deputy are already in jail.
The employees of Cabrera have also been detained.
Illegal pyramid schemes continue
¶9. The Machala newspapers continue to be full of
classified ads offering high interest rates in return
for deposits and dozens of people have reportedly
withdrawn their money from the Bank of Machala fearing
general financial instability.
¶10. Comment: It is still uncertain how many people made
deposits with Cabrera, how much money was lost, and what
Cabrera did with the estimated hundreds of millions of
dollars. Rumors abound that Cabrera was involved in
money laundering, drug trafficking or other illicit
activities. One newspaper has reported that the U.S.
Drug Enforcement Agency had cleared Cabrera of
involvement in drug trafficking, which came as a
surprise to DEA personnel at post. A month after his
death, the press continues to be filled with new
revelations about this strange and sensational case. On
December 2, the body of Cabrera was exhumed again, this
time legally, to determine officially if it really was
him. There have been unofficial calls for the
extradition of the Cabrera family members from the
United States. Today saw the sacking of several senior
military officials in Quito, including the Chairman of
the Joint Chiefs, presumably in connection with this
case. The whole story has not yet fully played out and
the scandal could still reach higher. End comment.
HERBERT