Bancrédito Holding Takes Legal Action Against Lawyers for Costly Mistakes Resulting in $15 Million Fine
On September 17, 2025, Bancrédito Holding Corporation (BHC) took a significant step in holding accountable those they believe are responsible for the $15 million fine laid against them by the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN). The lawsuit was filed against three prominent international law firms: McConnell Valdés LLC, Holland & Knight LLP, and McDermott Will & Emery LLP. The complaint was lodged in the Eleventh Judicial Circuit Court of Miami-Dade County, and it centers around severe allegations of legal malpractice that allegedly led to the substantial financial penalty.
Luis Zapata, the CEO of BHC, has stated the firm’s position clearly: "Those who, instead of protecting the interests of the bank and its shareholders, acted negligently must be held accountable." He emphasized the need for legal redress for actions that not only harmed the institution’s reputation but also its financial standing. The filing comes after the recent dismissal of criminal charges against Julio Herrera Velutini, the founder of Bancrédito. This move illustrates BHC’s commitment to restoring its integrity and holding parties liable for damages caused by alleged negligence.
The legal action contends that the firms engaged in gross malpractice during critical negotiations with the Treasury. For instance, the lawsuit asserts that legal advice rendered led the bank to forsake legitimate defenses, ultimately resulting in a Consent Order that contained assertions which were known to be false by the bank's counsel. It states that any reasonable attorney should have recognized the shortcomings of accepting a Consent Order under such circumstances, especially when the firms had earlier affirmed the adequacy of the bank's compliance programs. The complaint notably points to a joint letter issued by McConnell Valdés and Holland & Knight to Puerto Rican regulators in 2020, which stated that the bank's anti-money laundering and Bank Secrecy Act compliance programs were sound. Yet, when investigated by FinCEN, these same firms advised the bank to accept positions contrary to earlier opinions.
Adding to BHC’s legal troubles, a previous lawsuit filed against Driven Administrative Services—the receiver that acted as the bank's board during liquidation—remains pending appeal in Puerto Rico. In that instance, BHC accused Driven of breaching its fiduciary duty by adhering to the negligent advice of the bank's counsel, resulting in the unfavorable Consent Order with FinCEN. The lawsuits altogether reveal a complex web of legal entanglements and the intricate challenges faced by Bancrédito in navigating these issues. The legal disputes raise questions about the responsibilities of law firms in providing counsel to their clients, particularly in high-stakes situations impacting reputations and financial fortunes.
As the case unfolds, it is expected to attract considerable attention within the financial and legal communities. Stakeholders will be watching closely, as the outcome could have implications not just for Bancrédito, but could also set precedents regarding the accountability of legal advisors in corporate governance. Bancrédito's resolve to pursue justice reflects a broader movement within corporate America, where companies are increasingly willing to hold external counsel responsible for their mistakes.
As this lawsuit progresses, it serves as a reminder of the critical importance of diligent legal advice in navigating compliance-related matters and the catastrophic costs associated with any missteps that can arise from negligence in the legal profession.
Luis Zapata, the CEO of BHC, has stated the firm’s position clearly: "Those who, instead of protecting the interests of the bank and its shareholders, acted negligently must be held accountable." He emphasized the need for legal redress for actions that not only harmed the institution’s reputation but also its financial standing. The filing comes after the recent dismissal of criminal charges against Julio Herrera Velutini, the founder of Bancrédito. This move illustrates BHC’s commitment to restoring its integrity and holding parties liable for damages caused by alleged negligence.
The legal action contends that the firms engaged in gross malpractice during critical negotiations with the Treasury. For instance, the lawsuit asserts that legal advice rendered led the bank to forsake legitimate defenses, ultimately resulting in a Consent Order that contained assertions which were known to be false by the bank's counsel. It states that any reasonable attorney should have recognized the shortcomings of accepting a Consent Order under such circumstances, especially when the firms had earlier affirmed the adequacy of the bank's compliance programs. The complaint notably points to a joint letter issued by McConnell Valdés and Holland & Knight to Puerto Rican regulators in 2020, which stated that the bank's anti-money laundering and Bank Secrecy Act compliance programs were sound. Yet, when investigated by FinCEN, these same firms advised the bank to accept positions contrary to earlier opinions.
Adding to BHC’s legal troubles, a previous lawsuit filed against Driven Administrative Services—the receiver that acted as the bank's board during liquidation—remains pending appeal in Puerto Rico. In that instance, BHC accused Driven of breaching its fiduciary duty by adhering to the negligent advice of the bank's counsel, resulting in the unfavorable Consent Order with FinCEN. The lawsuits altogether reveal a complex web of legal entanglements and the intricate challenges faced by Bancrédito in navigating these issues. The legal disputes raise questions about the responsibilities of law firms in providing counsel to their clients, particularly in high-stakes situations impacting reputations and financial fortunes.
As the case unfolds, it is expected to attract considerable attention within the financial and legal communities. Stakeholders will be watching closely, as the outcome could have implications not just for Bancrédito, but could also set precedents regarding the accountability of legal advisors in corporate governance. Bancrédito's resolve to pursue justice reflects a broader movement within corporate America, where companies are increasingly willing to hold external counsel responsible for their mistakes.
As this lawsuit progresses, it serves as a reminder of the critical importance of diligent legal advice in navigating compliance-related matters and the catastrophic costs associated with any missteps that can arise from negligence in the legal profession.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.