World Finance Corporation

world finance corporation

The world finance corporation was founded in 1971 and its was headquartered at Coral Gables Florida. WFC was founded by Guillermo Hernandez Cartaya an expatriate banker in Cuba after completing serving a sentence that he got for participating in the Bay of Pigs Invasion. It was said that this banker hoped to use his ranging contacts to tap a growing market that was cropping between American borrowers and American creditors. The cropping market was enhanced by the Edge Act of 1969. World finance corporation in 1975, was designated the largest loan of $100 million by the then Colombian government.

Overseas banks and loans
In 1973, WFC set up Unibank in Panama which received the area’s most liberal license “a Class One License” WFC held a larger equity with three other American banks holding each 8% percent of the total equity. By 1976, Unibank had started showing signs of growth with over $50 millions in deposit and worldwide affiliates. Unfortunately, Unibank was involved in many frauds frequently diverting loan payments to its founder the WFC and many of the loans that were diverted often vanished. Unibank was not only involved in financial frauds, but it also got involved in circumventing an embargo of Cuba and arms smuggling. All these frauds later in 1977 lead to the collapse of the bank as over great loss of finances. WFC developed also set up Ajman Arab bank together with the government of Ajman. This bank underwent the same fate as that of Unibank and when Cartaya went to explain the financial losses, his passport was confiscated by the UAE authorities but later he managed to escape with the help of a fellow Cuban.

WFC scandals and investigations
World finance corporation caught national attention when about 6 different investigations started that included the FBI, the DEA, the IRS, the Dade County, the Controller of the Currency and Florida. The investigations showed that WFC was the longest operating and largest launderer of money that was used by the Colombian smugglers. It took about two years for these investigation bodies to come up with such report. At the end of it all, the investigation managed to ruin the image of world finance corporation and this finally lead to the closure of WFC in 1980.

At the same time, the National bank of Florida that was under control of WFC was under investigation. It was said that Cartaya used this

International finance corporation World Bank Grou;

bank to launder and filter bad loans and funds to himself and his associates. A considerably large amount of money was also channeled through another bank this time in Bahamas known as Cisalpine bank from which the money was channeled to a Vatican Bank to accounts that were Swiss Numbered. The Vatican Bank was then owned by Roberto Calvi an Italian banker and Archbishop Paul Marcinkus. At the end of the investigation, Hernandez Cartaya and Richard Fincher were the two main suspects of answerable to the frauds. Also as a result, $7600 was returned by Robert Shevin the Florida Attorney General which was contributions from Latin businessmen that had connections with WFC. Finally, in 1982, WFC founder Cartaya was convicted on tax evasion charges

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