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(506) 2223-1327               Published Monday, June 28, 2010,  in Vol. 10, No. 125        E-mail us
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Milanes case finally gets to a courtroom Thursday
By the A.M. Costa Rica staff

The Luis Milanes case finally reaches a courtroom Thursday, the day a preliminary hearing is scheduled.

Milanes, known as the Cuban in the high rolling times of the early 2000s, faces allegations of fraud in the collapse of his high-interest borrowing scheme. His operation was a contemporary of that run by the Villalobos brothers.

The hearing begins at 8:30 a.m. in the auditorium of the Judicial Investigating Organization in the judicial complex. Although about 2,400 persons are believed to have given Milanes money in exchange for a 3 to 5 percent monthly return, it is unlikely that a tenth of that number will show up.

At the same time Milanes through his lawyers and others is trying to buy off the complainants at the rate of 20 cents on the dollar. The man has posted property said to be worth $5 million with the courts in anticipation of a settlement. That was part of the agreement prosecutors reached with Milanes when he gave himself up

Milanes served a day in jail when he returned from El Salvador to face the fraud charge. He had been detained at the airport there traveling on a fake Costa Rican passport June 18, 2009, the International Police Agency said at the time. The man had been a fugitive for five and a half years. The soft treatment afforded Milanes when he arrived in Costa Rica caused observers to believe he was coming here as some type of agreement for his surrender.

The preliminary hearing will allow lawyers for Milanes to challenge the prosecutor's case, which is being presented by Marcela Muñoz Ramírez. The hearing is scheduled to continue into August.

Milanes is expected to plead poverty and blame an associate, now in Europe, for absconding with the bulk of the funds.  The associate, José Adolfo Somarribas Arias, had been detained on an international warrant in Luxembourg. Somarribas is a former candidate to be defensor de los habitantes, the nation's ombudsman, and was a recognized San José lawyer. He is fighting extradition to Costa Rica, and Luxembourg is believed to be preparing a case of money laundering.

Some 500 former investors are believed to have signed on as complainants. Some have said they never will settle, so a trial is likely if the judge at the preliminary hearing sustains the allegations. That might not take place until next year.

In addition to Milanes, a handful of associates also are facing charges. Investors are anxious to see who actually shows up Thursday. Milanes himself might be absent. He has been complaining of ill health.

Among those facing allegations in the Milanes case is Michael González Espinoza, who served as accounts manger at the operation in the 11th floor Edificio Colón offices until it folded Nov. 25, 2002. González was a close friend and employee of Luis Enrique Villalobos until he got a job with Milanes. He served time in pre-trial detention.

Also facing allegations, according to court papers, are Enrique Pereira Oceguera, general manager of Savings Unlimited; José Victor Poo, identified as a supervisor of the operation; Enrique Pereira Sila, auditor general; José Milanes Tamayo Coto, the brother of Luis Milanes, who worked as the general manager of an associated company; Mercedes del Carmen López Blandon, a former Milanes housekeeper who rose to a position of
Luis Milanes
Luis
Ángel
Milanes
Tamayo


confidence in the operation, and Herman Zango Milgram.

Investors who have come forward represent about $40 million in deposits with the firm. As with the Villalobos operation, many are older and not every foreign investor reported the interest to their home country's tax office.

Investors are not expected to be sympathetic to any claims of being short on money. Milanes has been living large since his return and running his handful of casinos. He also is believed to have continued to participate in poker tournaments.

Investors also are believed to be skeptical of the true value of the properties that Milanes posted with the courts.

One lawyer for investors asked the courts to conduct an audit of the Milanes operations, but that request was denied.

It is Costarican Savings Unlimited, a Panamá corporation, that was doing business here as Savings Unlimited. The operation was called informally "the Cubans" because of the heritage of Milanes and others. Milanes is a dual Cuban-U.S. citizen.

In all, the Milanes operation has about 47 separate companies, said court papers. Investors were led to believe that Milanes owned the Hotel Europa, the Hotel Royal Dutch, the Hotel Costa Rica Morazán, the casinos Europa, Tropical, Royal Dutch, Majestic, La Condesa and the Tobby Brown beauty shop chain. All but the Royal Dutch actually were rented properties, said court papers. Many investors thought they were part owners of the hotels and casinos.

Although today the idea that a company can pay 3 to 5 percent interest a month on investments seems unlikely, when Savings Unlimited was in operation from 1999 to 2002, there were at least five similar firms offering about the same deal.

The most well-known was the Villalobos operation in Mall San Pedro. He was secretive about what he did with the money and paid his investors each month with cash stuffed in an envelope.

He required a $10,000 initial investment.

Milanes required $5,000, although many investors gave him much more. His operation also was more formal with a cashier's window and elegant etched glass entry doors. While Villalobos gave his investors Bibles, Milanes and his associates frequently would take investors to casinos and bars. The sour employees of Villalobos were in contrast to the beautiful female workers at Savings Unlimited.

Prosecutors raided the Villalobos operation and confiscated boxes of paperwork. When Milanes pulled up stakes, all the paperwork in his office was destroyed, complicating the job that prosecutors have. Oswaldo Villalobos Camacho, one of the brothers, was convicted of aggravated fraud and illegal financial intermediation, mostly on the strength of the paperwork.


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San José, Costa Rica, Monday, June 28, 2010, Vol. 10, No. 125

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Bike-riding rules restated
as school vacations near


By the A.M. Costa Rica staff

The draconian new traffic law has not forgotten those who ride bicycles.

The transport ministry said Friday that it was reminding the public of regulations involving bikes because the public school vacation begins at the end of this week.

Bike riders of any age have to wear a helmet, and a reflective vest is required from 30 minutes before dusk to 30 minutes after sunrise. In addition, those on bikes are not allowed to use highways where the speed limit is 80 kph (50 mph) or more. The penalty for doing that is 38,142 colons or about $60.

The penalty for not using a helmet is 286,026 colons, the ministry said. That's $544. Costa Rica has an active bicycle racing community, and many persons in the countryside use bikes for transportation. However, there are few bike paths, and the bicyclists mix with motor traffic, frequently with tragic results.


Arias to speak at event
marking Florida 1810 revolt

Special to A.M. Costa Rica

Nobel laureate Óscar Arias Sánchez is among leaders and scholars who will speak at a fall symposium commemorating the 200th anniversary of the West Florida Revolt, which inspired freedom movements across the Western Hemisphere.
 
Arias won the Nobel Peace Prize in 1987 for his efforts to end civil wars in Central American countries. He will be joined by other scholars and leaders at the Hemispheric Freedom Symposium. Louisiana State University’s Paul M. Hebert Law Center is presenting the gathering on Sept. 21-22 in Baton Rouge, Louisiana.
 
Speakers confirmed for the event include: Domingo Cavallo, former minister of foreign relations for Argentina; Michael Shifter, president of policy for Inter-American Dialogue; and Cynthia Aronson, director of the Latin American Program at Woodrow Wilson International Center for Scholars.
 
In 1810, rebels from Baton Rouge to the West Florida border rose up against the King of Spain, declared their independence and formed the Republic of West Florida, which stood for 76 days as a nation before being annexed by the United States. The revolt inspired further rebellions across the hemisphere, including those in Venezuela, Argentina, Columbia, Mexico and Chile. In the 15 years following the West Florida Revolt, many of the present geopolitical boundaries of Latin America began taking shape.
 
At the symposium, speakers and participants will examine cultural, economic and trade issues, political and historical relationships, and shared influences in the development of laws.


Competition launched to find
funds for small business

Special to A.M. Costa Rica

The G-20 and Ashoka’s Changemakers, with support from the Rockefeller Foundation, have launched an online competition to find the best models worldwide for public-private partnerships that generate money for small and medium enterprises. The G-20 SME Finance Challenge, the first ever competition launched by the G-20, is a unique financial inclusion effort aimed at giving small entrepreneurs a chance to grow their businesses.

More on the G-20 HERE!

During remarks to international business leaders at the G-20 Business Summit, Canadian Prime Minister Stephen Harper announced the competition and pledged $20 million from Canada.

“Small and medium enterprises are the single largest contributor to employment and job creation, in Canada and around the world,” said Harper.  “This G-20 initiative will help provide developing countries with the access to financing they need to get their small businesses up and running.”

Only an estimated 20 percent of small firms in low-income countries have access to credit. Small and medium enterprises are often too small to attract commercial bank or investor interest, but too large to benefit from microfinance products, competition organizers said.  To date, few solutions to support this middle tier of businesses have been found, they added

The G-20 SME Finance Challenge is asking the private sector to identify path-breaking models that make public programs more effective in leveraging private finance.  Private financial institutions, investors, companies, foundations and civil society organizations are all invited to submit proposals. 

“By identifying the best financial solutions to support SMEs, the G-20 is playing a critical role in the global fight to create jobs and reduce poverty,” said Rockefeller president Judith Rodin.

The G-20 and Ashoka’s Changemakers invite entries now until Aug. 25 at changemakers.com/SME-Finance. Details on guidelines and criteria for the proposals can be found on this Web site.

The G-20 is committed to mobilizing the public share of the funding needed to implement winning proposals from development banks and interested donors.
 
 
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A.M. Costa Rica guide

This is a brief users guide to A.M. Costa Rica.

Old pages

Each day someone complains via e-mail that the newspages are from yesterday or the day before. A.M. Costa Rica staffers check every page and every link when the newspaper is made available at 2 a.m. each weekday.

So the problem is with the browser in each reader's computer. Particularly when the connection with the  server is slow, a computer will look to the latest page in its internal memory and serve up that page.

Readers should refresh the page and, if necessary, dump the cache of their computer, if this problem persists. Readers in Costa Rica have this problem frequently because the local Internet provider has continual problems.

Searching

The A.M. Costa Rica search page has a list of all previous editions by date and a space to search for specific words and phrases. The search will return links to archived pages.

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A typical edition will consist of a front page and four other newspages. Each of these pages can be reached by links near the top and bottom of the pages.

Classifieds

Five classified pages are updated daily. Employment listings are free, as are listings for accommodations wanted, articles for sale and articles wanted. The tourism page and the real estate sales and real estate rentals are updated daily.

Advertising information

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Contacting us

Both the main telephone number and the editor's e-mail address are listed on the front page near the date.

Visiting us

Directions to our office and other data, like bank account numbers are on the about us page.


For your international reading pleasure:


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San José, Costa Rica, Monday, June 28, 2010, Vol. 10, No. 125

Rapid Respose


For Heredia tomato farmer, the investment is 90-day bet
By Dennis Rogers
Special to A.M. Costa Rica

Tomato prices are high, and substantial areas are being planted around Santo Domingo de Heredia, but a local farmer only wanted to talk about the risk involved.

Jorge Chávez of San Isidro has a hectare of freshly planted tomato, while the large area around Santo Tomas and Los Angeles de Santo Domingo belongs to the largest tomato grower in the country, Javier Rojas. The latter has packing plants in Grecia.

Land is available since coffee is unprofitable over the long term and when plants need to be replaced it’s just as easy to grow something else. Some places have tomatoes on fairly steep slopes which have traditionally only been used for coffee. Considerable land in the Santo Domingo area is held by speculators who don’t mind if they can get some rent in the meantime.

Chávez takes his produce to the CENADA wholesale market. He also grows some stringbeans and other green vegetables for the local market.

Agriculture requires faith in the price that will be there when the product is ready for harvest, in the case of tomatoes in Heredia after 90 days. Chavez said that the elaborate setup for tomatoes costs about 1,000 colons per plant, with 10,000 plants per hectare. This includes the plants themselves, poles and plastic for the “semi-greenhouse” sheltering the rows, PVC drip-irrigation tubing and/or sheet plastic to maintain moisture in the soil, and wind blocks. The rows are oriented towards the prevailing wind which changes with the season in the area near the Zurquí pass.

Chemicals used are mostly insecticides for a tiny white moth that feeds on the sap of the plants, with various other boring worms that attack the stems and fruit.

In good conditions each plant should produce about five
young tomato plants
A.M. Costa Rica/Dennis Rogers
Young plants are ready to enjoy the drip irrigation

older plants
A.M. Costa Rica/Dennis Rogers
Plastic keeps the weeds down

kilograms of tomatoes over its lifetime, so the price received must be at least 200 colons per kilo to break even. At the moment the price for an 18-kilo tub at  CENADA is 13,000 colons, or 720 colons per kilo.

For much of last year, the price was only 1,500 colons for 18 kilos, and Chávez said he lost 20 million colons.


Suspect caught in serial rapes and murder along highway
By the A.M. Costa Rica staff

Agents say they have detained the man who went on a rape and killing spree centered on the Autopista General Cañas.

The suspect was detained Saturday at a bus stop mainly on the strength of a police artist sketch to which four women victims contributed.

Investigators said the man was responsible for the murder of Cindy Esquivel Zúñiga. She was on the way to work walking along the highway June 20 in morning daylight when a rapist caught her and murdered her. Her body was found a week ago, and investigators added more resources to the search for the man. They have attributed four rapes and two attempts to him, all along the same highway.

Three days before the murder, a woman was forced at knife point from a path along the highway to a secluded spot, but she managed to get free.

The man, identified by the last name of Díaz, came into police hands in the La Uruca section of the highway. The
rapes ranged from a few kilometers from the start of the four-lane highway in San José to San Antonio de Belén. Ms. Esquivel died in Barreal de Heredia near where she worked in a store.

The rapist appears to have made at least one attack every day. Most victims were waiting for buses.

Investigators did not go public with the news that a rapist was stalking women in the area, although A.M. Costa Rica suggested the pattern Tuesday. There are residential areas off the highway and there is heavy foot traffic to bus stops from these areas.

When detained, the man claimed to be a minor, but Jorge Rojas, director of the Judicial Investigating Organization, said that medical tests showed that the man was an adult. The maximum penalty for a minor who murders is eight years. For an adult, the prison term could be 50 years.

The Autopista General Cañas is the highway that runs from San José to Juan Santamaría airport and the Alajuela Centro turnoff.

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San José, Costa Rica, Monday, June 28, 2010, Vol. 10, No. 125


Emphasis on local security
begins with the barrio


By the A.M. Costa Rica staff


The security ministry is continuing to develop its anticrime program from the bottom up.

Fuerza Pública officials call it barrios organizados or seguridad comunitario. Saturday about 500 men and women graduated from the program in Desamparados.

The program is something short of a local patrol. The organized communities number nearly 2,000 all over the country, and they can best be equated to a neighborhood watch, alert neighbors who make telephone calls if something is amiss.

The program has been going on for years, and areas that have taken the training are marked by yellow signs at their borders. There are no clear statistics on how effective the program is, but the training at least raises the consciousness of residents to possible crimes. Those who undergo the training attend 12 sessions given by Fuerza Pública officials. Each session is two hours, and they are given in the local communities.

Some 28 communities in Desamparados were represented in the ceremony Saturday at which signs were handed out. Even some of the very poor sections, such as Los Guidos, were represented.
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Security grad gets a sign for his community



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San José, Costa Rica, Monday, June 28, 2010, Vol. 10, No. 125

Medical vacations in Costa Rica

Protests and arrests mar
G-20 summit in Toronto

By the A.M. Costa Rica wire services

Hundreds of demonstrators protesting the G-20 global economic summit in Toronto broke windows and set fire to some police cars during a noisy march near the site of the summit Saturday.

A column of thick black smoke rose from the burning police cars in a chaotic scene that included throngs of police in riot gear and many protesters.  Police say some were anarchists, wearing black clothing, including masks.

Police adopted a more aggressive approach Sunday and raided a building containing activists, and the total arrests rose to 500.

Toronto Police Chief Bill Blair says his officers were pelted with rocks and bottles, and used teargas to control one large crowd Saturday.

Toronto Mayor David Miller says a few hundred people were responsible for the violence, out of thousands of marchers.  He says people are welcome to express their views peacefully, but his city will not tolerate violence.

Marchers have been complaining about everything from pay for public employees to expensive housing to the excesses of capitalism.

Summit organizers have been so concerned about security that they have spent around $1 billion and brought in thousands of police from across Canada to strengthen the city and provincial police forces here.

Meanwhile, at the formal sessions government leaders set targets to slash government deficits, haggled over tougher financial regulations and compromised on a proposal to tax banks.  The G-20 meeting wrapped up Sunday.

G-20 leaders say the global economic recovery is fragile and faces serious challenges, including growing government deficits.

The Greek crisis showed how large deficits can make lenders worry that they will not be repaid, and keep them from making the new loans, stalling the economy.

Canadian Prime Minister Stephen Harper urged his colleagues in advanced nations to cut their deficits in half in three years, but also urged them to make cuts with caution.

The G-20's final communiqué, hammered out by leaders behind closed doors, also offers a compromise on a proposal for a new tax on banks.

At the height of the global financial crisis, many financial firms were bailed out by governments using taxpayer money.

Bank tax advocates say the financial industry, not taxpayers, should put up the money to help cover the cost of a future crisis.  Critics of the tax idea say it would disadvantage banks in countries that impose it and hurt their economies.  And the idea is strongly opposed by banks.

So the G-20 leaders compromised, endorsing the principal that the financial industry should pay for any future crisis, but leaving each nation free to work out ways to raise the money.

They also discussed the need for better ways to regulate financial firms, and directed groups of experts to refine proposals for the November's G-20 gathering in Seoul, South Korea.

During the international meeting, some advocates for the poor complained that the G-20 and the group of eight leading industrialized nations, or G-8, did not do more to help the world's most vulnerable people.
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San José, Costa Rica, Monday, June 28, 2010, Vol. 10, No. 125


Latin American news
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Chávez welcomes Syrian
as part of strategic plan


By the A.M. Costa Rica wire services

Venezuelan President Hugo Chávez has met with visiting Syrian President Bashar al-Assad, who is touring Latin America in an effort to strengthen economic ties in the region.

Saturday, Chávez presented his guest with a gold-plated replica of a sword that once belonged to South American independence icon Simón Bolívar. 

Chávez also was quoted as saying Assad's visit was part of a strategic project of cooperation to build the Caracas-Damascus axis linking the two countries. 

Chávez has built close ties with Syria, Iran and other Middle Eastern countries, while severing ties with Israel.  He also is an outspoken critic of the United States and used the visit with Assad to lash out at the U.S.

This is the Syrian leader's first visit to Venezuela.  It follows a trip last year to Damascus by Chávez, who signed a series of agreements with Assad.

Assad's tour of Latin America, after Venezuela, will take him to Brazil and Argentina.  All three countries have large communities of Syrian émigrés.  The Syrian leader is also scheduled to visit Cuba.

Alex loses some force,
but gulf will give boost


By the A.M. Costa Rica wire services

Tropical Storm Alex weakened and was downgraded as it moved over Mexico's Yucatan Peninsula Sunday, but forecasters say it could regain some of its fading strength when it passes over the southern Gulf of Mexico.

The U.S. National Hurricane Center says Tropical Depression Alex, which made landfall in Belize late Saturday, is moving across the southern Yucatan Peninsula with winds around 55 kph.

Alex is expected to bring some 10 to 20 centimeters of rain (four to eight inches) on the Yucatan Peninsula, southern Mexico, Guatemala and Belize by Monday.

Forecasters say some mountainous areas of Mexico, Guatemala, and Belize could get as much as 40 centimeters of rain, (up to 16 inches) possibly causing life-threatening flash floods and mudslides.

Experts say unless the storm suddenly changes direction, it is not expected to pose a threat to oil-spill cleanup operations in the Gulf of Mexico, where a ruptured oil well is leaking massive amounts of crude into the water every day.





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The contents of this page and this Web site are copyrighted by Consultantes Río Colorado 2001, 2002, 2003, 2004, 2005, 2006, 2007  and 2008 and may not be reproduced anywhere without permission. Abstracts and fair use are permitted.  Check HERE for details