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Euro Pacific bank is a scam

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EPB had a long history of non-compliance and even its own auditors had doubts about‌ it's ability to operate in 2019.
It has been insolvent for many years and they‍ were fined many times for not renewing their license.
Very long reading, but provides clear⁠ timeline of the way the whole thing was run.

Orders here: https://www.mediafire.com/file/vuoyh8a2b6kbskb/Euro_Pacific_International_Bank_-_Orden.pdf/file (Could not attach⁤ due to filesize being too large).
Around page 10 provides the financial position. Around $4m⁣ in customer deposits went missing in 2020, so it was not a full reserve bank.⁢
 
Hello @john8899,
Can you explain why auditors had doubts about EPB in 2019 if‌ OCIF began their investigation in mid 2020? Who are these auditors? What did they say?‍ Where did they say it and when?

History of non-compliance being a cause of anything⁠ seems like a far fetch when OCIF didn't even investigate.

4 mill missing is nothing⁤ for a bank or even for someone like PS. They could have easelly injected that⁣ money if they were allowed to. The bank was more stable than any other bank⁢ as far as reserves go if only that much was missing. Most banks have not︀ been destroyed in circuimstances a thousand times worse than what you had at EPB. Like︁ SVB or even Novo.

There has been 0 care given to depositors back then and︂ even now. Clearly EPB was not closed to defend them. What matters is not what︃ you say but what you do, because what regulators says are just hogwash.
 
Did you download the document and⁠ read it? It says around page 10 and 11. There are some figures of the⁤ financial situation.
Please download the file and read first as it provides a full timeline⁣ of events since the bank was created.

If 4 million of customer deposits went missing,⁢ then it was not a full reserve bank is it not? How can a full︀ reserve bank have missing money if no money was made on loans? Where did the︁ money go? Who took it?
The next year it was $13m missing, so what happened︂ there?
 
I can't download︀ that file. I have waited 10 min to get it. The server is probably very︁ far from me so even if I have good bandwith it won't download, but I'm︂ pretty sure I have seen a document like that in the past. I remember translating︃ something from spanish as well.

The reason is simply that running a bank costs money︄ and the monthly fees of the depositors did not cover all of the expenses. There︅ was also a run on the bank in around 2020 due to the world wide︆ IRS media campign so most of the depositors left and so most of the income︇ has left as well which caused a downward spiral. Over time it could have been︈ reversed if the regulators stopped their defamatory accusations that they never followed through with in︉ the end. Obviously no business can sustain itself without customers.

If the issue was that︊ EPB did not have the 100% reserves, then putting that money back in should have︋ solved that problem, but they were not allowed to do that. It is like complaining︌ about someone not being able to jump a fence after you crushed their legs.
 
The auditors confirmed that bank was insolvent in 2019, so the conspiracy that the bank‌ went insolvent after IRS investigated is false.

Even if the bank did not have enough‍ money to cover costs, customer funds need to be segregated. How can customer funds be⁠ withdrawn and used to pay for anything the people in charge wants? So, if the⁤ bank provides a low interest or zero interest loan to the directors or CEO as⁣ part of their pay / compensation package, should it be allowed to use customer deposits⁢ to do so? If so, what if the director / ceo is unable to pay?︀ Do you see why customer deposits should not be mixed with other funds in the︁ bank? They should be separate!

Uploaded to another site: https://filebin.net/fq3e088jq3eqmx8h
 
Yes regulators claimed EPB was "insolvent" because a large chunk of money was in European‌ Banks and not on hand as cash in Puerto Rico. That is the definition of‍ nonsene. Calling a bank that is on average at least 4 times more liquid than⁠ any other banks makes little sense when you think about it.

Sure, segregating customer funds⁤ would be a good rule so why not enforce that rule instead of killing the⁣ bank and making hundreds of people destitute? Do you see why blowing up a bank⁢ on a whim is not good for depositors?
 
Where and when was this assertion made? This is the first time I've heard of⁠ this.

If funds were not segregated, then it is very dangerous for customers, the operating⁤ capital of a bank is not the customer deposits. The management has already been given⁣ a lot of opportunity to do the right thing many years ago, even before the⁢ 2020 relevations, but they refuse to the right things and got shutdown and customers lost︀ everything.
 
Pretty sure PS said it here, but the liquidator⁢ also confirmed that ultimately no money was missing and that every depositor will be reimbursed︀ in full. Obviosuly a meager 4 mill missing would not make any bank "insolvent". If︁ I recall correctly the problem was that EPBs deposits in banks were treated as loans︂ for said banks making EPB to be categorized as some technical definition of insolvency.

Whether EPB did the right thing or not is irrelevant when it comes to the responsibility︃ of the IRS and OCIF in this case. You can't just say that everything regulators︄ do is correct simply because the regulated do bad things. The regulators didn't just punish︅ EPB, but the depositors as well while falsely claiming that they were protecting depositors.

If the issue was that deposits were not segregated then OCIF could have made an ultimatum︆ stating that if the money is not put back and segregated in the future than︇ they will shut down the bank. Instead they just shut down the bank. Whatever their︈ agenda was they didn't care about the depositors not then and not now and not︉ in the future.
 
sorry but︀ you write total nonsense. Taping regulatory capital is also forbidden and EPB did exactly that︁ knowingly!
 
Document seems to agree with what NYT published and what I mentioned here⁢ years ago....lol. How unbecoming of a "full reserve bank" to be using client funds.

The reason most people are in this situation with EPB is because they put fanaticism aka︀ being a "fan" of someone ahead of common sense and caution. Fans (aka fanatics) will︁ defend the indefensible most times.

We are going round in circles and people are not︂ interested in knowing the facts but just taking the view point of someone they are︃ a fan of even when it goes against their own interests. All very sad.
 
Look at my messages.︁ I have literally said that EPB was short by millions and that clearly was wrong︂ and that that should not have happened. I said that multiple times including now. As︃ far as I remember, being insolvent was not necessarely related to that specifically, but if︄ I am wrong what difference does it make? Nothing. If it was because of the︅ 4 mill than that was the cause. It changes nothing. Why not just put in︆ the missing money, change management and start auditing every year instead of every decade? Why︇ is that such devilish idea?

What I am suggesting is that the punishment was too︈ severe for the mistakes that were made. There are several banks that knowingly washed drug︉ money and many more banks that have gone bankrupt that were not punished nearly as︊ quickly or as harshly as EPB was, and consequently most of the damage to the︋ clients was avoided by treating the nuclear option as a last resort instead of the︌ opening strike.

If this makes me a fanatic, so be it.
 
Because running a bank is not running a kebab shop. You can't say ahh sorry‌ I inject new capital and then all is fine to the regulator! You clearly have‍ ZERO banking experience.

No the punishment was not too severe as PS is a flamboyant⁠ guy telling all other people that he is right and others are wrong. PR is⁤ a banana republic (even PS admits that here now) and nobody with a clear mind⁣ would incorporate a bank there.

But it was the cheapest and loosest regulated jurisdiction -⁢ so wonder why EPB moved there.
 
The missing deposits were not the⁣ only problem with the bank! They also did not renew their banking license multiple times⁢ and then had to pay a fine. They were asked for documents by regulators, but︀ they refuse to submit what was asked. The list goes on and on and the︁ bank seems to behave as if they were above the law and ultimately had to︂ be shutdown, causing tremendous problems for customers. Then after the bank got shutdown, there was︃ the shady deal with Qenta and it seems those who opted to move to Qenta︄ now have their money at risk.
 
@john8899 I'm pretty sure Peter said the reason why they couldn't renew their license was‌ because OCIF refused to approve it (after doing the opposite for many years). So we‍ don't know what happened, but I guess it would make sense that Peter would sabotage⁠ his own bank for no reason... I mean why wouldn't he do that?
The shady⁤ deal with Quenta was approved by OCIF who's responsibility it should have been to safeguard⁣ the money, but I guess no government agency can be responsible for their own actions⁢ in this Universe.
 
It seems that Responsible Gold Trading DMCC has a⁠ valid license until 2026 at least according to the website. I am assuming they renewed⁤ it recently.

The other one is pretty much gone.
 
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