Tag Archives: Astor Asset Management 3 Ltd

Administrative, Antitrust, Business Law, Corporate Law

Astor Asset Management Highlights Ongoing Legal Challenges and Ethical Concerns Surrounding Ricardo Salinas and Grupo Elektra

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VANCOUVER, Canada, 27-Jan-2025 — /EuropaWire/ — Astor Asset Management 3 Ltd is raising awareness about the ongoing legal challenges and recurring accusations of unethical conduct involving Ricardo Salinas Pliego, the chairman of Grupo Elektra. These issues highlight a troubling pattern that is likely to cause concern among investors and stakeholders, particularly in light of Salinas’ actions over the years.

In 2005, the U.S. Securities and Exchange Commission (SEC) charged Salinas with orchestrating a scheme to conceal his involvement in transactions that resulted in a personal gain of $109 million. The SEC alleged that Salinas, along with other executives at TV Azteca, failed to disclose material information to investors, violating federal securities laws.

Further scrutiny of Salinas’ financial activities surfaced in 2012 when reports pointed to his rapid accumulation of wealth. While Grupo Elektra’s revenue grew significantly, concerns were raised about the aggressive lending practices of its financial arm, Banco Azteca, which targeted low-income consumers with high-interest loans.

In 2019, additional revelations linked Salinas to financial dealings with companies benefiting from a controversial deal at the center of a corruption scandal in Mexico. Specifically, connections were uncovered between Salinas and European entities with large stakes in Grupo Fertinal, a fertilizer company sold to the state-owned Pemex, with the transaction now under investigation for alleged fraud.

The situation escalated in May 2024 when a federal bribery accusation in the U.S. implicated Banco Azteca in a scandal involving illegal payments to influence legislation. This raised serious concerns about the governance and ethical practices of both the bank and Grupo Elektra.

In March 2024, Fitch Ratings downgraded Grupo Elektra’s credit rating, citing governance concerns within Grupo Salinas. The downgrade highlighted the potential risks associated with the company’s management and operational transparency. Reports have also suggested that Ricardo Salinas has been using Grupo Elektra for personal financial gain.

Moreover, in September 2024, Grupo Elektra was delisted from the Mexican Stock Exchange amid ongoing legal disputes, including a significant tax litigation with Mexican authorities, further underscoring the challenges the company faces under Salinas’ leadership.

Astor Asset Management 3 Ltd has obtained confidential information revealing that Mexican and European financial institutions are refusing to lend money to Ricardo Salinas, engage in transactions with Banco Azteca, or provide correspondent banking services to the institution.

These cases underscore a concerning pattern of legal disputes and accusations of unethical behavior associated with Ricardo Salinas Pliego. Astor Asset Management 3 Ltd advises investors and stakeholders to remain vigilant and carefully consider these ongoing and historical issues when assessing any engagements with Grupo Elektra, its affiliated entities, and Ricardo Salinas himself.

For more information, visit the following sources:

https://www.sec.gov/news/press/2005-1.htm
https://www.forbes.com/forbes/2012/0507/global-2000-12-americas-grupo-elektra-ricardo-salinas-pliego-mexico-credit-card.html
https://www.wsj.com/world/americas/the-mexican-bank-behind-alleged-bribes-to-a-texas-democrat-4cf4cc17
https://mexicobusiness.news/ecommerce/news/fitch-ratings-downgrades-grupo-elektra-over-governance-concerns
https://mexicobusiness.news/ecommerce/news/grupo-elektra-delisted-mexican-index-amid-legal-issues
https://www.wsj.com/articles/documents-tie-mexican-mogul-to-company-at-center-of-fraud-probe-11567589400

Business Law, Cases, Litigation

New York Supreme Court Imposes Escalating Fines on Ricardo Salinas Pliego and Grupo Elektra for Non-Compliance with Financial Disclosure Orders

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VANCOUVER, 9-Jan-2025 — /EuropaWire/ — Astor Asset Management 3 Ltd has reported a significant ruling by the Supreme Court of New York against Ricardo Salinas Pliego and his company, Grupo Elektra, for non-compliance with court-ordered financial disclosures. The court has found Salinas and his affiliated entities in contempt, issuing escalating daily fines and granting creditors the right to seize his personal assets until the financial disclosures are provided.

The ruling originates from Grupo Salinas Telecom, S.A. de C.V., Grupo Salinas Telecom II, S.A. de C.V., and their associated entities failing to comply with post-judgment discovery orders. As a consequence, the court imposed a fine of $15,000 per business day starting from July 12, 2024, with the fine amount doubling on November 8, 2024, unless the required disclosures are provided. Shortly after the court’s judgment, Salinas moved millions of dollars out of the U.S. to evade the judgment and prevent the arrest of his assets by the court’s bailiff.

In a key ruling, the court granted an alter ego motion, acknowledging that Grupo Elektra, Banco Azteca, and Salinas are alter egos of Grupo Salinas. This ruling enables creditors to target Salinas and Grupo Elektra directly for payment of the outstanding financial obligations.

Additionally, AT&T Mobility Holdings B.V. was awarded $296,801.95 in legal fees for its efforts to enforce the judgment.

The court’s decision emphasizes its authority in ensuring compliance and holding Salinas and Grupo Elektra accountable for their financial duties. The fines will continue to accumulate until the entities comply with the court’s orders.

The full ruling from the Supreme Court of New York can be viewed at: https://law.justia.com/cases/new-york/other-courts/2024/2024-ny-slip-op-33991-u.html

SOURCE: EuropaWire

Antitrust, Business Law, Corporate Law, Securities, Trade Law

Astor Asset Management Impulsa Demanda Colectiva Contra Ricardo Salinas y Grupo Elektra por Falta de Transparencia Financiera

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VANCOUVER, Canadá, 11-Sep-2024 — /EuropaWire/ — En una iniciativa de gran importancia para los accionistas de Grupo Elektra, S.A.B. de C.V., Astor Asset Management 3 Ltd ha comenzado el proceso de conformar un grupo de inversores para llevar adelante una demanda colectiva contra Ricardo Benjamin Pliego Salinas y su empresa, Grupo Elektra. La demanda se basa en la falta de divulgación de transacciones financieras clave, como préstamos y pignoraciones de acciones, por parte de Salinas, lo que, según la firma, ha causado un daño material a los accionistas.

De acuerdo con Astor Asset Management, Salinas y su familia, quienes poseen una participación mayoritaria en Grupo Elektra, no han cumplido con las obligaciones de transparencia, afectando el precio de las acciones de la compañía. El objetivo de la demanda es obtener compensaciones para los accionistas que, según se alega, han sufrido pérdidas debido a la sobrevaloración del precio de las acciones de la empresa.

Astor invita a los inversores que adquirieron acciones de Grupo Elektra en los últimos siete años a unirse a esta acción colectiva, con la intención de buscar justicia y transparencia en el mercado.

SOURCE: EuropaWire

Antitrust, Business Law, Cases, Securities, Trade Law

Investors to Pursue Class Action Against Ricardo Salinas and Grupo Elektra Over Alleged Financial Misconduct and Shareholder Harm

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VANCOUVER, 11-Sep-2024 — /EuropaWire/ — In a significant development within the investment community, Astor Asset Management 3 Ltd has initiated steps to form a group of investors to pursue legal action against Ricardo Benjamin Pliego Salinas and Grupo Elektra, S.A.B. de C.V. The lawsuit alleges Salinas, who controls 74% of Elektra’s shares, has engaged in improper financial dealings, including undisclosed loans and share pledges, that have harmed shareholders.

The case centers on Salinas’s alleged failure to disclose critical financial transactions, such as the recent pledge of 7.2 million Elektra shares as collateral for a loan with Astor Asset Management. The lack of transparency surrounding these activities, along with previous non-disclosures of trades and loans, has drawn the attention of regulators and investors alike.

Astor claims that Salinas’s actions have contributed to an overvaluation of Elektra shares, which trade at an inflated price despite declining earnings. These factors, combined with a series of prior regulatory fines for Salinas, have raised concerns of market manipulation and misinformation.

Astor is calling on investors who have purchased Elektra shares within the last seven years to join the class action, with the goal of seeking compensation for financial losses incurred due to alleged manipulation and lack of regulatory compliance. The lawsuit is expected to be filed in multiple jurisdictions, including Mexico, the United States, and Europe.

SOURCE: EuropaWire