Ramón Báez Figueroa
Ramón Buenaventura Báez Figueroa | |
|---|---|
| Born | 1956 |
| Occupation(s) | Businessman, former bank president |
| Known for | Ex-president of Banco Intercontinental (BANINTER); involved in 2003 banking fraud scandal |
Ramón Buenaventura Báez Figueroa (born 1956) is the ex-president of the Dominican Republic's Banco Intercontinental (BANINTER), who faced accusations in 2003 for masterminding the nation's most extensive banking fraud, amounting to over US$2.2 billion (equivalent to more than US$3 billion today).
Family and early life
Báez Figueroa descends from a lineage of two former Dominican presidents (Buenaventura Báez and Ramón Báez Machado), belonging to a distinguished family in the Dominican Republic. His father, businessman Ramón Báez Romano, was the grandson of ex-president Ramón Báez Machado.
He first married María Rosa Zeller Barrous, with whom he had two children, before their eventual divorce. On January 12, 1997, he entered into marriage with Patricia Álvarez DuBreil, granddaughter of industrialist Horacio Álvarez Saviñón and a cousin-niece of Luis Álvarez Renta. Their extravagant wedding took place at Casa de Campo, Dominican Republic, reportedly costing upwards of US$2 million and earning the nickname "Wedding of the Century" in a nation where GDP per capita was around US$2,000 at that time. The couple divorced in 2013. He later married Sandra Martínez Yangüela in June 2014.
From 1993 until BANINTER's downfall in 2003, Báez Figueroa held the position of CEO; he and his father collectively owned no less than 80% of the bank’s shares. He gained a reputation as the Dominican King Midas. By 2001, BANINTER’s valuation reached RD$25.57 billion (roughly US$1.51 billion).
BANINTER crisis
On May 15, 2003, Ramón Báez Figueroa was detained alongside BANINTER executives Marcos Báez Cocco, Vivian Lubrano de Castillo, Jesús M. Troncoso, and financier Luis Álvarez Renta. They faced allegations including bank fraud, money laundering, and information concealment linked to an enormous RD$55 billion (US$2.2 billion) fraud scheme that severely impacted the Dominican economy—equivalent to nearly two-thirds of the country’s national budget.
The central bank's intervention led to annual inflation rates soaring by 30% and heightened poverty levels. The government responded by devaluing the peso, which precipitated the failure of two additional banks and resulted in a US$600 million loan from the IMF.
The scandal ignited intense conflicts over control of media outlets affiliated with the bank group, notably the influential newspaper Listín Diario, which was temporarily seized by President Mejía’s administration following BANINTER’s collapse.
During the 2006 trial proceedings, revelations emerged about debt cancellations and preferential financial arrangements suspected to have benefited prominent political figures.
Concerns about BANINTER’s financial health arose in late 2002, triggering a wave of deposit withdrawals. The Dominican Central Bank provided credit extensions to stabilize the institution. Early in 2003, an announced acquisition by Banco del Progreso fell through. Investigations uncovered that approximately two-thirds of BANINTER’s deposits were concealed off official records through bespoke software designed to mislead regulators and auditor PricewaterhouseCoopers over several years.
In April 2003, governmental authorities assumed control of BANINTER. The bank's ownership was predominantly held by Báez Figueroa’s family, with stakes exceeding 80%. Comprehensive investigations backed by both the IMF and Inter-American Development Bank unveiled the crisis's full magnitude.
Judicial proceedings against Báez Figueroa commenced on April 2, 2006, involving testimony from around 350 witnesses including former President Hipólito Mejía. However, at the defense’s request, the initial hearing was postponed until May 19, 2006.
Sentence
On October 21, 2007, following a protracted trial that ended in September, a panel of three judges sentenced Báez Figueroa to a decade in prison and mandated restitution payments exceeding $31 million. Although charges related to money laundering were not included, financier Luis Álvarez Renta—another alleged orchestrator of fraud—was found guilty and received a 10-year prison sentence for laundering money. Additionally, Marcos Báez Cocco, the former vice president of the Bank, was convicted, with his sentencing still pending.
The defense team declared their intention to file an appeal. Meanwhile, accusations against Báez’s aide Vivian Lubrano and Baninter Board secretary Jesús M. Troncoso were dropped due to lack of sufficient proof.
Supporters
Supporters linked BANINTER’s operational deficiencies to Báez Figueroa’s political connections and inadequate management skills. His attorney, Marino Vinicio Castillo, argued that the case was driven by political motives and challenged the RD$55 billion embezzlement claim as fabricated. Castillo accused certain government factions of attempting to dismantle BANINTER for their own benefit. He also emphasized that PricewaterhouseCoopers had audited Baninter’s financial statements for years without raising any concerns.
Defenders further proposed that former President Mejía perceived Báez Figueroa as a rival threatening his financial interests and political goals, aiming more to seize control of BANINTER’s media enterprises than to resolve the scandal itself.
Despite being detained, Báez Figueroa retained significant influence among the elite, evidenced by visits from President Leonel Fernández and Hatuey de Camps, then head of the Dominican Revolutionary Party, shortly after his arrest.