Cough It Up, Business Tells Citibank

SAN ANTONIO (CN) - Citibank National Association claims it had nothing to do with $113,000 sent by wire to the Majapara casa de cambio in Mexico City- a money exchange house whose funds have been frozen in response to allegations of massive fraud. But Cacheauk, Cavazos and Newton LP says the routing slips show that the moneywas routed through Citibank, which should repay it.

Here is the Dec. 17, 2007 CNS story reporting the first claim of fraud against Majapara.

CHICAGO (CN) - Wachovia Bank claims it wired Majapara Casa de Cambio, in Mexico City, 26 million Euros on Dec. 7, but Majapara never sent back the $38.1 million U.S. dollars, as promised. Wachovia also sues Harris Bank of Chicago, where Majapara has an account.

After Majapara stiffed it for the $38 million, Wachovia claims in Cook County Court, two deposits for Majapara, totaling $9.5 million, came to Wachovia, and Majapara had the brass to try to transfer that money out to another bank. Wachovia said it prevented the transfer, and that Majapara now owes it $24.7 million (sic).

And, Wachovia says, it expects it may be asked to cover $3 million in Majapara's bounced checks per month, "into the future."

Wachovia claims Majapara's CEO, Jorge Ortiz, admitted in a phone call that he owes Wachovia the $30 million; that he took the money because of a "liquidity crisis;" that he loaned the money to third parties; and that he knew that doing so was illegal, as Mexican casas de cambio are not allowed to make loans.

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