GUZMAN BANK FRAUD TALE DENIED

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000300350004-0
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: November 11, 2016
• Document Release Date: October 1, 1998
• Sequence Number: 4
• Publication Date: May 26, 1965
• Content Type: NSPR

V6-MI3INGTON POST' .4.140
^^ ^^ Sanitized - Approve CIA-R
CPYRGHT
1 nco Agricola, of which Giiz?
G ~rp 4~1 s> ~~ an was a director, had over
?
1 [il is j
s ated its assets by $75 million
I
a d that thousands -of notes
Banks Fraud 1g irl $ collateral, worth of sort.
g g fie c collateral. were missing.
ale Denie
g tiators and the' "constitu economic prostitution com_1
nalist" rebels of CuT. Fran-
I' co Caamano,Deno. ? ?'' mitted during the tyranny of!
Accounting Firm Rebel sources said the snag Trujillo," when, he said, the!
11
i
d
" f
irms capital was
ncrease
s only technlt ft
.',,Disputes Chargeica airs.)
de- fictitiously" from $5 million, ?
fib t then grew into a U
S
.
.
Spread and for an explanation of to $100 million.
Spread by Foes i+ e -11......+7...... 1....t~...? n...- fin w-hinn+nn Ti R nfFi.A
an. - , ' dials said a copy of the audit;
lihad been received by the
By Barnard L.? Collier.
Herald Tribune News servie? ;rro and Con Battle State Department recently,`'SAN 'TO DOMINGO ' Ma According, to I nformed ;, but Guzman had not been!
'25---Antonin Guzman Sil erican sources, the real !connected with the matted
i'estre, whom Amerik to en ; stacle to a solution of the 'because the audit did not list'
l tl and'rcbel lead Ts )fad, minican crisis is a "fern- ,the bank's directors by name,:
YS . us' battle within the John. John Goshko of The Wash.'
,greed'o'n'fbr prc;ii 1, -1 t of n Administration over the lington Post reported.
! ' Dfllninicati coalitivri g v, p os and cons of forming the , - rThe officials emphasized' 1were ports of their attenaLricts
less firm
' were
.
rnment fl.itl tiger, i(d - to. 'j o""50" Guzman coalition, that they had no way of telling
Y ` The -irguttient_ of 'the- anti 1,"at present" whether 'the lm-i ~ Should a large number of
t a im ilicationS In ">~l'ash: ' forelgn ministers show up,
y 1 uzman or pro-Imbert people, plications of irregulatities,~
U.S. officials said that Secre?
li igton that lie was involved I said to be that any conccs-,were true or whether Guzman tary of State Dean Rusk prob-
in a inassivcbank ebil.e:6le ons to the rebels will be could be tied personally to any ably' would take over as head
isinterpreted politically in scandal that might result,
ingot. of the U.S. delegation.
United States as a back- Goshko reported.] Presidential adviser Mc-
f e
%.The' implications Wit also; own before a Communist-
ompletely rejected by the ominated group. The rebels '.Latin Foreign Alinisters George Bundy was reported
to be returning from Sant
o
l
h
h
i
onger
oug
no
t
one t
me-
local manager of the New were so described by U.S., Com,ing Here for Talks. Domingo and there were Indi-
'York accounting firm ofd cations that he also would
accounting
fi
i
l
h
hk
B
J
M
G
n
os
c
a
s.
y
o
.
o . . take part in the meetings.
Ernst & An
audit f0. The Implications against wsahtntton Post staff writer Er
Th
e current OAS delibera-
port by Ernst & Ernst was' uzman were denied - indig? The foreign ministers of sev,,
anti b Benjamin Bere gist Latin American countries., tions were officially desig.
cited as the basis for the ahc- Y - Y hated a foreign minister.
"shed by the Washington r anager here who directed the ington before the end of the. minican crisis -broke out tasty
s x-month audit of the Bancoweek for discussion of the I month. Until now, however
Daily News. gricola. The audit was or-'; hemispheric problems raised ,'
'~ ? , each of the 20 members has,
assistant
Presidential Mc red in 1963 during the con by, the Dominican Republic been represented by its normal
out a Dominican compro-
mise through Guzman are re-
porledly bcinj'-b'itierly ol.
posed in some official quarters
in Washington. The presiden-
tial envoy was said to have
been stunned Monday) when
the implied charges against
Guzman were made public,,
American sources here
FOIAb3b
Bank and the aid mission!
here,"
Guzman himself insisted in,
a statement that the audit re-i
port showed "no dishoncstyi
on my part or by any directors
of the bank."
He attributed the bank'st
financial weaknesses to "the
The `OAS delegations from
Brazil and Ecuador announced
m
gne
o g
e
,suggested that supporters favorable terms, was, he ministers, Vasco Leitao da
'of the Dominican j u n t a ded "in no way connected Cunha and Gonzalo Escu-
,lhader, Gen. Antonio Imbert ith the Agriculture Ministry dero, will come to Washing-Imala.
B
ibl
arrera were respons
e for ton on Thursday
, d Guzman's- job as a supe-.
the circulation of a falsified In s A A 14 1 n n diplomatic The United States and some
-m muuenee or access w u.
audit, from which the infer. ank's f u n d s without tho ly that the foreign ministers to push fdr creation of a per-1
ence of wrongdoing on Guz? nowledge of scores of highly of Argentina, Bolivia, Para- manent OAS peace force and'
man's part was drawn. Rudy would attend the OAS other machinery to deal with
d r
r
i
l
ffi
d
ep
s an
o
c
a
e- session. Also mentioned. *-ere subversion In the Hemisphere.
Published stories based ,fin specte
the ithe foreign ministers bf Co- -However, most Latin dips '
the purported findings of the -n ionizations of Including International or.
, ? feel
audit said that the okliligan Ileitl6li,Md.Vtetgttels,,bpt the mats deemed to yeat~r?
Raniti t" RM6 VAease : CIA-R P7500 401 00 WOW 4
These allegations produced
y .a last-minute snag on Monday
i ed President Juan Bosch, ins Reports of the impending place of their respective min,.
hose cabinet Guzman served'high-level meeting at - the Or- ?isters.
agriculture minister. ganization of American States Although the Dominican'
"This is just politics," Bere- highlighted a day on which 'the~.` T- =
7,wskl said. "I found absolute- White house confirmed in ef-Isituation will be the dominant
1 no evidence of dishonesty feet a report published Yes- (topic, the indications are that)
r ctors of the bank or on thelPost that the FBI is conduct-'the wave of unrest that has
art df Mr. Guzman, who was
member of the Bank's "su-
rior directorate."
The Banco Agricola, de-
ers
iv
loans to far
d t
swept Latin America in the
wake of the Santo Domingo
revolution. Bolivia and Cal
lombia. have been especially.
hard hit, and there also have
been stirrings of trouble in.
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