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According to the SEC, Vesco has chosen Costa Rica as a "haven" and Alvarez is helping him relocate there. President Figueres says that Vesco is still welcome to Costa Rica. At IOS's complex of buildings at Ferney-Voltaire in France, just across the border from Geneva, functionaries are preparing for relocation. They are selling everything movable, including bosses' rosewood desks and even toilet seats. Rumors are that the move will be either to Madrid or-no surprise-Costa Rica...

Author: /time Magazine | Title: SCANDALS: One of the Largest Frauds | 12/11/1972 | See Source »

...time that the stock sales were going on, Vesco sought to conceal his part in them by pretending that he was out of IOS. He resigned as chairman in September 1971 and later had International Controls sell its IOS stock. But, says the SEC, the stock was sold to Kilmorey Investments, yet another dummy company set up by Vesco in the Bahamas...

Author: /time Magazine | Title: SCANDALS: One of the Largest Frauds | 12/11/1972 | See Source »

...Whether Vesco is out even yet is unclear. Kilmorey on Oct. 30 sold control of IOS to a group of Spanish and Latin American businessmen headed by Prince Gonzalo Borbón y Dampierre and including Rafael Díaz-Balart, a former brother-in-law of Cuba's Fidel Castro, but the group now is reportedly trying to back out of the deal. In any case, the group has ties to Vesco; one of its members is Alberto Alvarez, the head of the Costa Rican company that got $60 million from Fund of Funds...

Author: /time Magazine | Title: SCANDALS: One of the Largest Frauds | 12/11/1972 | See Source »

Receiver. If the SEC can prove its allegations, several reputations will be tarnished. Most of the defendants are accused of helping Vesco set up his dummy corporations. As a director of three of the funds, James Roosevelt, according to the SEC, knew what Vesco was up to and did nothing to stop it; the SEC says that Roosevelt's independence was "impaired" by a $150,000 loan from a Vesco-controlled Bahamian bank. Three members of the law firm of Willkie Farr & Gallagher-Allan F. Conwill, Raymond W. Merritt and John S. D'Alimonte-are accused of having...

Author: /time Magazine | Title: SCANDALS: One of the Largest Frauds | 12/11/1972 | See Source »

Donald Nixon has not been accused of anything, but he has worked for nearly two years as an administrative assistant to Vesco. Young Nixon said that he took the job because it offered him the best opportunity for business experience. Vesco gave $50,000 to the re-election campaign of Donald's uncle in September and October-by coincidence or not, the very time when the SEC investigation of Vesco was reaching a climax...

Author: /time Magazine | Title: SCANDALS: One of the Largest Frauds | 12/11/1972 | See Source »

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