Four Executives Ordered to Preventive Detention in Sartor Fraud Case

A Santiago court has ordered the preventive detention of four individuals involved in the Sartor case: Pedro Pablo Larraín Mery, Carlos Larraín Mery, Michael Clark, and Sergio Yáñez. Judge Paulina Moya of the Fourth Guarantee Court of Santiago granted the measure after a six hour session, citing the defendants as a danger to the investigation and society. Pedro Pablo Larraín and Carlos Larraín were former executives of Sartor AGF, Michael Clark was the former owner of Tactical Sport and president of Azul Azul, and Sergio Yáñez was the former controller of Emprender Capital. Gendarmería reported that the Larraín brothers and Yáñez were sent to the Santiago 1 detention center, while Clark was sent to the Capitán Yáber annex.

The prosecution alleges that the executives created a scheme where public investment funds were funneled into private funds, which then financed companies linked to the directors. This operation allegedly prioritized personal gain over fiduciary duties, resulting in a total estimated loss of approximately 191 million US dollars. The judge found evidence of fraud through the omission of a public acquisition offer and money laundering, though she ruled that the granting of simulated contracts was not proven. Other defendants in the case are currently under house arrest or other less restrictive measures.

The court highlighted specific risks to the evidence, noting that Pedro Pablo Larraín allegedly instructed the disposal of his mobile phone and that Michael Clark attempted to delete messaging conversations. The judge emphasized that the complexity of the corporate structures was used to hide the true situation of the funds from investors.