Costa Rica Money Laundering Criminals Indicted

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Criminals Indicted in USA for Laundering

I had the task of recovering money that a client sent to an online Costa Rica money laundering scheme. The same Costa Rica money laundering criminals were indicted in the USA. Fortunately, my client was able to recover his money prior to the closure of the scam. Not everyone is so lucky. Once again, if it sounds too good to be true it is. The scam was offering a method to move money without regulators knowing where the money originated.

The New York Times reports that this scam was “a PayPal for criminals”. The scheme embraced activities globally allowing participants to move money I’n complete anonymity. According to the article, Liberty Reserve was responsible for criminal activity ranging from stolen identities to child pornography. In the indictment which was handed down in Manhattan, “Liberty Reserve was in fact used extensively for illegal purposes, functioning in effect as the bank of choice for the criminal underworld.”  The New York Times also reports that a “senior law enforcement official, who spoke on the condition of anonymity because the charges had not yet been announced, said that one undercover agent was able to register accounts under names like “Joe Bogus” and describe the purpose of the account as “for cocaine” without questioning. That no-questions-asked verification system made Liberty Reserve the premier bank for cyber-criminals, facilitating a broad range of illegal online activity.”

Dwtails of scheme

According to information contained in the indictment Liberty reserve is estimated to have laundered more than $6 billion dollars. The founder of Liberty Reserve, Arthur Budovsky, who reportedly renounced his United States citizenship in 2011, was arrested in Spain on Friday. Budovsky formed a Costa Rica corporation in 2006 and used it as a vehicle to promote this money laundering scheme. Previously Costa Rica law provided a method of forming corporations that were completely anonymous. They are called S.A. (Sociedad Anonima) and it is virtually impossible to pierce the corporate veil due to the structure of the S.A.. Unlike American corporations an  S.A. is owned by the person who has physical possession of the corporate books. The corporate officers that appear on the official records in most cases have no connection to the ownership.

One reason I felt it was important to post this information is the high incidence of fraudulent activities here in Costa Rica. Many times unsuspecting Americans and other visitors are easy prey for the con artist. Remeber the old adage “if it’s too good to be true, then it is”? Whether it be investment offers or real estate you owe to yourself and your family to be sure before you commit any money to anything in Costa Rica.

We advise our clients that prior to sending any money to Costa Rica, especially via Western Union, they retain the professionals at Cody L. Gear and Associates to conduct a thorough due diligence. The cost of such an inquiry could prove to be pail in comparison to the loss you may suffer if you don’t. For more information call us toll free at 321*218-9209.

 

Costa Rica Private Investigators are Significantly Different

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The difference

 

Costa Rica Private Investigators are significantly different from their American counterparts. For international investigations, i.e., those in Costa Rica are unique from those in the United States. Private investigations in the United States differ from those in Costa Rica. Since I have been here for over 15 years I know the differences. You will want to keep in mind that Costa Rica is still a third-world country. If you don’t you may be throwing your money away.

 

Comparison

When you want to hire a private investigator here, you need to understand it is different that the States. Commercial directories that include a lot of information about people and businesses in the United States are available. You can also find cross-reference directory sites that identify and associate people and phone numbers. This is not the case in Costa Rica.

Database and public records

You will note, Costa Rica Private Investigators are significantly different due to the accessibility to information. The availability of data sources is thorough making the job of a private investigator in the U.S. simple in comparison to a Costa Rica private investigator. I know that is outside the scope of this blog to explain all of the differences. Depending on which region is included, Costa Rica private investigators can not access all records. Absent a lawsuit we can access civil claim records unless they have a valid reason or a source in the government in Costa Rica.

Criminal records

When it comes to criminal records, there is no reliable database that is accessible in Costa Rica.  Rather, Costa Rica private investigators must have reliable law-enforcement sources to obtain information on criminal records.  Even then it may require the services of a Costa Rica attorney to get the information. Additionally, having resources to get in touch with various governmental agencies in possession of said records is a must. There could be 3 or 4 governmental agencies with criminal and/or civil record information.

Getting the information

Investigations in Costa Rica are normally more challenging than those in the United States. The privacy laws in Costa Rica in some circumstances are stricter when compared to personal privacy regulations within the U.S. This is often the case when it pertains to criminal record checks. Corporate records in Costa Rica are incomplete. Corporate registrations in Costa Rica and other Latin American countries are entirely different regarding needs and details obtained throughout a search of records. Business records in Costa Rica are vague. Consequently, there have been cases where people’s information is not recorded properly.

Corruption

Corruption is a major issue in Costa Rica regarding private investigators and the information they can obtain. It is necessary that when an agency, corporate body, or individual decides to utilize a Costa Rica private investigator you need to vet. I also know, relying on their results, to use in your case a straightforward investigator must be retained. If you do not, the Costa Rica private investigator involved may be influenced by outside influences.

Conclusion

I know, most international private investigators know they can frequently obtain money from both their client and the subject of their investigation. You need to be cautious when choosing a Costa Rica private investigator because of the potential for corruption. I recommend you vet thoroughly a private investigator and choose the one that feels the most comfortable and knowledgeable to you. For information on this subject please visit our website, www.codygear.com, or call us toll-free at 321-218-9209.

 

Costa Rica Real Estate Fraud

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The U.S.- Costa Rica Real Estate Fraud Increasing

The police (OIJ) busted a real estate closing Monday and arrested five men suspected of Costa Rica Real Estate Fraud. The arrests took place at the closing agent’s office in Guadalupe. I have learned from news sources, that the agents uncovered an elaborate scheme. Prior to the fraud completion police notified the real owners. As a result the  police were able to thart the fraud.

They are incredibly lucky.

What we know

According to news sources, the unusual thing was that the agents were able to move in at the closing. OIJ spokesperson said they received an anonymous tip, The tip was last week, and enabled OIJ to contact the real owner of the property who said that his land was not for sale. Of those arrested one is 82, and the other suspects are 35 to 52, according to OIJ. OIJ did not reveal the names of the suspects. The property in question is in Tres Ríos in the Cartago area.

Authorities moved swiftly

OIJ acted quickly after obtaining the tip and was successful in thwarting the fraud. Being a Certified Fraud Examiner, I know that most of these types of real estate fraud are not detected until sometime after the closing. By being proactive the OIJ and its agents should be applauded for detecting and preventing this fraud. As in the United States, typically real estate fraud cases have low priority and insufficient resources to detect, apprehend and prosecute such cases. If you are considering buying real estate in Costa Rica, call us! We know the ends and outs of Costa Rica Real Estate Fraud.

Conclusion

If you are thinking about or in the middle of a real estate deal here, stop and call us. I recommend this and compare it to a second opinion from a doctor.

 

Costa Rica Brides

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Costa Rica is gaining popularity for nothing else but Costa Rican brides and romance scams these days.

How the country got itself involved in this mess goes back to two things; beautiful women; and a dismal economy.  As Costa Ricans seek a better life, many have found that by scamming foreigners on the internet can be a way out to a better situation.  None better than a Costa Rica Bride scheme. If being a criminal or unethical is what it takes, many Costa Rican scammers accept the risk. The poor economy in Central America has led many beautiful Costa Ricans to seek love online on major social networks and also online dating sites.  Other Costa Rican women choose adult web cam sites or adult online dating.  They hope to meet a foreigner who can support them, and pay their way to a better life.  And, they are willing to do nearly whatever it takes to get it.

Current status

We as Costa Rican investigators can confirm that in the past six months the request for investigations on women located in Medellin and elsewhere in Colombia has nearly doubled.  Clearly, not all Costa Rican women are scammers and many are beautiful, honest and decent women truly looking for love, or just looking to meet new people. Investigators say ignoring the risk, however, is a dangerous way to conduct relationships online, and often leads to internet users being victims.

Fake profiles and photographs

Some scammers use fake profiles and photographs.  Others show themselves on website, but lie about their true identity and/or circumstances.  Still others reveal themselves entirely, but lie about their intentions, feelings and motives just to get your money or gifts.  It’s a serious risk that can leave online dating subscribers and social networking users devastated with heartache and very serious financial loss.  Experts say it is essential to verify first rather than later.

Caveat Emptor

Remember “caveat emptor” (buyer beware)   that the risk for online scams and fraud, especially in the realm of internet dating and social networks continues to rise.  Guard your personal information.  Do not reveal your true date of birth or address until you’ve met the subject in person, or had the person verified by a reputable private investigation company and background check.

Professional scammers

Romance scammers are professional criminals that know their ways to gain your trust and eventually your money. Investigators have seen people requesting help when it is already too late and in most cases, victims have lost a lot of money and life savings, even their homes in some cases.  Whether it’s Costa Rica or elsewhere, take it slow on the internet.  Take time to get to know the person, protect your personal data, and consider an a thorough due diligence prior to sending any money or making an emotional commitment, this will save you money and heartache.

Map of Costa Rica

Costa Rica and Due Diligence

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Private Investigator in Costa Rica and due diligence is a must

As a well-seasoned private investigator in Costa Rica, many have asked, “why is due diligence so important in Costa Rica?” Because if the proper research is not done prior to entering into a contract, you may lose all of your money. The laws here are very different than those in the United States. In Costa Rica frauds abound everywhere, especially in real estate.

The money you spend for due diligence is pale in comparison to the financial and emotional catastrophe that looms if you don’t!  It’s much easier and less expensive to prevent a problem rather than trying to repair one afterward. Do yourself a favor and get the facts first before you commit to anything in Costa Rica.

What Is Due Diligence

1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regard to a sale or information concerning the parties involved. It also is most important when you are thinking about a romantic relationship with a Costa Rica woman.

2. Generally, due diligence refers to the care a reasonable person should take before entering into an agreement or a transaction with another party.  For example, offers to purchase an asset are usually dependent on the results of a due diligence analysis. This includes reviewing all financial records plus anything else deemed material to the sale. Sellers could also perform a due diligence analysis on the buyer. Items that may be considered are the buyer’s ability to purchase, as well as other items that would affect the purchased entity or the seller after the sale has been completed.  Due diligence is a way of preventing unnecessary harm to either party involved in a transaction.

I can’t begin to emphasize the importance of due diligence prior to doing anything in Costa Rica. Not only real estate, but investment offers as well as personal relations with a Costa Rican woman. This beautiful country has much to offer, but there is a scam at every corner waiting for its next victim. As the economy in the United States improves so will the opportunities to relocate or invest here.

From spending many years in this part of the world I can tell you that you cannot be too careful when risking your money. The money you spend for a thorough and complete due diligence is pail in comparison to the potential loss you face if you don’t.

Contact our offices today for more information regarding this and other subjects that affect your future in Costa Rica or Florida, feel free to contact us at 321-218-9209 for a free consultation.

Costa Rica-Panama Run

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The Costa Rica-Panama Run has more headaches than ever. Recently, a group of Costa Rica football players was traveling to Panama to play in David. At the border, the Panamanian immigration required each person to demonstrate that they had $500. Either on their person or prove they had that much in an account they could access from Panama. The team had a few Americans. In addition, they were required to produce proof of a return trip ticket to the United States from Panama. The Americans were detained until they provided proof of purchase for a return trip to the United States.

What’s the problem?

It is unclear if this initiative was solely the Panamanian Government or a collaboration between Costa Rica and Panama. The objective was to stem the abuse of the “permanent tourist”  which Costa Rica wants to stop. It has long been the custom in Costa Rica that Americans were given a visa stamp for 90 days. Many Americans who stay here longer would travel to either Panama or Nicaragua to obtain another 90-day stamp. Entry into Costa Rica is for 30 days and Americans must show proof of a return to the United States.

Why is this happening?

It is apparent that the governments in this part of the world are increasing their efforts to impede Americans. So, freely moving between countries or otherwise not complying with local immigration regulations is ending. Residency requirements in Costa Rica are in a perpetual state of flux with changes taking place with little or no thought as to the consequences. As one Panamanian official said when asked; ” We are tired of processing thousands of perpetual tourists from Costa Rica each year who contribute nothing to Panama. Thinking you are “entitled” to have your passport stamped is a misconception and the times of the past are no longer”.

It is advisable that if you go to the border by land for any reason you should be prepared to face obstacles, particularly if you are an American. If you need assistance prior to traveling I suggest that you contact us to learn the latest in border crossing snafus.

Relationship Background Checks

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I have often thought, why don’t my clients check the backgrounds with who they have a relationship? Relationship background checks are absolutely necessary for any relationship in Costa Rica. Furthermore, failure in doing so may cause you both emotional and financial bankruptcy in the future. You need to keep in mind that Costa Rica is a third-world country. Thus the economics here leave many wanting just for the basics every day. We recommend that before you do anything here, you have us do the due diligence to prevent a bad decision. Caveat Emptor, which means “buyer beware”.  Perhaps in this context, it should be “careful what you ask for, you might get it”. You as the foundation of a relationship here cannot be understated.

What do I need to do a background check

It is important that you get as much information that is available prior to due diligence. Things like the complete name, date of birth. and place of employment. You need to remember, everything person down here has two last names. Absent a cedula number it is impossible to get an accurate due diligence check done. With the complete name accessing the records will be more efficient and save money. The more information you provide the more information we will be able to get. Aslo, pinpointing where they live is important for several reasons.

What about business relationship?

Before you enter into any business agreement with anyone in Costa Rica you need to have them checked out. If its real estate even moreso. The biggest fraud here is real estate fraud. The main reason for this is due to no government oversight on real estate agents or companies. If you want to be a real estate agent in Costa Rica you don’t need a license to do so. Costa Rica is notorious for fostering and promoting fraud by scammers. That is the reason yo need to do your homework.

 

Cheating Girlfriend in Costa Rica

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Back in the States do you have a Cheating Girlfriend in Costa Rica?

Do you ever have a gut feeling that you have a cheating girlfriend in Costa Rica? Concluding all of us men are the same. As a tenured and professional private investigators, most, think with their hearts. Moreover, that is until the brain takes over and says “something wrong here”. More than often they don’t see what is right in front of their eyes. It’s a predicament. We try to avoid scams and cheating girlfriends. The more we get reeled in the fewer things we see that are obvious.

Sometimes it takes the scrutiny or unbiased opinion of a neutral party to give us the truth that we don’t see in front of us. Actually taking the step to seek out this advice is a big one and as men, we don’t even want to admit to ourselves that the possibility exists. We rationalize all of the telltale signs of what she’s doing and try to convince ourselves that there is an explanation for everything. There are always red flags. The red flags are usually pretty standard and anyone paying attention will see these red flags long before the man will.

Observations

Cody Gear has seen these scenarios firsthand for over 20 years. I know how to get you the answers you want….or don’t want. We won’t just bring you an opinion. We’ll bring you evidence and results to help you make difficult choices if that’s the case. If you think that you have a cheating girlfriend in Costa Rica, call us. For expert advice to help protect you from heartache and possible financial loss you might want to consider taking our short course on how to avoid getting caught in the most common traps of women who play games. If you want to find out more about this subject click here.

Legal

Costa Rica Squatters

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Costa Rica Squatters: Just when it seemed that investing in property in Costa Rica was safe, today saw the expropriation of property occupied by Costa Rica squatters. After a lengthy legal 2-year battle, a group of Costa Rican squatters expropriates land from owners. Squatters (“Campesinos”) have managed to take approximately 1050 acres from Dutch investors after a lengthy 2-year court battle.

April 2011 saw 316 families enter the farm in Medio Queso de Los Chiles. Located in Costa Rica’s central Northern Zone, near the border of Nicaragua. I know, the land belongs to a group of  investors, who rented the property to Costa Rica farmers. Consequntly, the land grab continues. If you have property here especially now, and you are an absentee owner beware you are at risk.

What is a squatter?

In the US, a squatter is any person who has moved onto property without permission of the owner. Commonly known as adverse possession.  Similarly, Costa Rica squatters move onto the property. Your intervention can stop the squatters building and protect yourself. I know the land is owned by a group of Dutch investors, who rented the property to a Costa Rican farmer. The farmer has been using the land to grow crops for the past few years, but the investors have decided to sell the land to a new buyer.

The farmer is worried he will lose his land and his livelihood if the new buyer decides to evict him. Shifting buildings and dwellings and claiming the land as their own. The squatters claim the owners were not producing on the land.  This is despite the declaration by the Costa Rican that had leased the land. Subsequently, asserting that he had made over $2 million in improvements to the agriculture area since the time he leased it.

The conflict grew over the next two years,  with the Costa Rica squatters being evicted numerous times by the police.  On several occasions, the attempts to evict the squatters turned violent.  The squatters alleged in addition to destroying their homes on several occasions the owners hired men to destroy farm animals. Moreover the men in doing so their belongings as well.

What happened next?

The squatters frequently returned to the property after being evicted, sometimes within hours of the eviction, and begin rebuilding. The dispute made Costa Rica national headlines last year when a secret audio recording of a police officer instructing privately hired guards to “shoot to kill” was made public.

The government agency that oversees such disputes, known as the Rural Development Institute (INDER) issued resolution 032-2013 this week, which orders the land to be expropriated and given to the squatters.

Over the years, the squatters have drawn support from many Costa Ricans, including on social networks. The local daily, newspapers heralded the decision by INDER to expropriate the property. One paper *Dario” declared,  “This agreement is a triumph for rural families of that community”. “The successful expropriation sets a precedent for struggling “Campesinos” (squatters) of the country. It shows that INDER is legally qualified to expropriate and distribute land to “Campesinos” who need it,” the newspaper continued.

Adverse possession in the US

Unlike the United States which has statutes in all states covering adverse possession, Costa Rica has none. Costa Rica law provides that unimproved agricultural land can be occupied by squatters. Furthermore, once they erect a structure they can obtain title to the land. There is no time restriction, thus the land once occupied by the squatter takes a court action to remove. The United States adverse possession laws give time limits with most requiring seven years of occupancy openly and notoriously prior to the squatter obtaining title.

This decision will have a chilling effect on foreign land investors. Gear said that any investor contemplating investing in unimproved land in Costa Rica should seek the services of a licensed attorney in Costa Rica prior to buying such land.

 

Travelling to Costa Rica

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Some things to know travelling to Costa Rica

 

Before traveling outside your native country to another country you should prepare yourself. There are things to know travelling to Costa Rica to avoid unpleasant consequences.  Learning about the country before you go can prevent common problems or confusion.  Cultures vary throughout the world and sometimes a simple misunderstanding can become a big deal.  Learning about the basic life, culture and laws of a country you are traveling to can help you to be prepared and have an enjoyable vacation.

The basic things you need to know include how to get around, business hours and various other points.  Once you get to Costa Rica you need to know how to get around from place to place, especially if you are not within walking distance of your destination.

How do I get around?

Buses are the main form of transportation.  It is the most cost efficient and easiest way to get around.  Do be aware that the buses in Costa Rica are small and sometimes cramped.  You will not be able to take along luggage and if you need a lot of legroom you will be in trouble.  Another form of transportation is a rental car.  They are quite more expensive and you need to have insurance that will cover the rental car in case of an accident.  Also know that most rental cars are standards, so if you do not know how to drive one you may be out of luck.

Business hours in Costa Rica are much like that in the United States.  Typically they run from 8 or 9 AM to 3 or 5 PM.  Everyday a lunch break takes place between noon and 2PM.  Also on Sundays most places will be closed.  Costa Rica runs on Central Standard time, which means some of those traveling from the US may get to avoid jet lag all together.  The healthcare system in Costa Rica is very advanced.  They have an excellent system that offers up-to-date medical care in modern hospitals.  You can most often find doctors that speak English as well.  These basic facts will help you to get used to life in Costa Rica, but there are some more things you should get to know.

What are the things I need to know?

In Costa Rica there are some legal things you need to know.  If you are renting a car be aware that Costa Rica is a good place to have an accident.  Drivers here rank low for auto accident rates. The speed limits are posted either on signs or painted on the pavement and you should always be aware of them. The speed limits range from 45 to 55 MPH in general.   Costa Rica laws require that all luggage is screened through customs and declarations must be filled out for certain items like food and anything valuable.  Alcohol is legal for those over the age of eighteen.  Also be aware that prostitution is legal in Costa Rica for those over eighteen. These helpful hints about legal do’s and don’ts will help you avoid problems while in Costa Rica.

Other things to note

It is always nice to know about little things that are often overlooked on travel websites or in brochures.  The water heaters in hotels in Costa Rica are not like those in the United States.  You will find they are mostly plastic tubes with an electrical gadget in the nozzle.  This means hot water may not always be hot.  The busiest time in Costa Rica is during what is called the high season.  The high season is between December and May.  You may find that getting reservations can be difficult during this time.  You usually do not have to tip while out in Costa Rica.  A 10% tip is added to your bill. Another good thing to know is that the sewer systems can handle toilet paper unlike those in other countries.

The water system in Costa Rica is treated and safe to drink. The electricity in Costa Rica is the same as in the United States.  They do not use the grounding prong in some locations, so be aware of the need for adapters for this reason.  Dancing is big in Costa Rica and you can find dance clubs all over.  Laundry mats are not common in Costa Rica.  Most people send their laundry out to be washed. Some vacation rentals offer a washer/dryer as an amenity.  These helpful little hints can help you get through your vacation without a mishap.

Costa Rica is a lovely, peaceful country.  There is a lot to see and do.  Once you have decided on Costa Rica get to know a little more about the country so you can enjoy everything it has to offer.

Reach out to a member of our investigative team, get the answers to any questions you might have.

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