Chile’s Financial Market Commission (CMF) concluded a sanctioning procedure opened in October 2024 and fined Larraín Vial Activos S.A. Administradora General de Fondos (LVA AGF) UF 60,000 and its former general manager Claudio Yáñez Fregonara UF 15,000 for inducing investors to purchase Series B shares of the Capital Estructurado I Investment Fund through deception, in breach of Article 53(2) of Law No. 18,045. The CMF also fined five former LVA AGF directors UF 5,000 each, and sanctioned STF Capital Corredores de Bolsa SpA (STFC) and its former general manager Luis Flores Cuevas UF 8,000 each for the same type of infringement linked to the sale of Series B shares. The case focused on the Fund being marketed and valued as if it provided an indirect equity stake in Grupo Patio, even though its assets were deteriorated loans to Inversiones San Antonio (and later Inversiones Monterey) whose financial condition was diminished. The CMF found LVA AGF and its management overvalued these debt securities and reported the inflated valuations to investors, while also breaching fiduciary duties by acquiring impaired debt for the Fund at nominal value without discounts despite clear non-payment risk. STFC’s sales materials were found to have mischaracterised the product and its investor base, including presenting it as “Fondo de Inversionistas LV-Patio”, using the Grupo Patio logo, and stating that major institutional investors had made significant contributions when this was not true; the Fund also never consolidated the promised indirect stake in Grupo Patio, and subsequent sales of Grupo Patio shares by relevant holders worsened the Fund’s situation. The CMF will forward the case information to the Public Prosecutor’s Office for any investigations it deems necessary, including possible criminal liability for Álvaro Jalaff, Antonio Jalaff and Cristián Menichetti.

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