FirstBank Sues Institute Over Fraudulent Merger

Law360, New York (October 16, 2009, 3:11 PM EDT) -- Seeking more than $10 million in compensation, FirstBank Puerto Rico Inc. has accused Instituto de Banca y Comercio Inc.’s insiders of carrying out a fraudulent merger in 2007 to deprive it of its 15 percent stake in the educational institution.

The complaint, lodged Thursday in the U.S. District Court for the District of Puerto Rico, claims the president of the IBC, Fidel Alonso-Valls, and other insiders perpetrated an elaborate scheme to enrich themselves and freeze out the bank in a sham merger.

“Individual defendants intentionally and...
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