◼ FINANCE Bloomberg Businessweek May27, 201930
toldhimthateitherheorhispartneropenedan
accountinhisnameandtransferredalmostallof
thismoneytothatnewaccountatthecompany’s
brokerageentity,CasadeBolsa.Thenthemoneydis-
appeared.Haynessaysheneverauthorizeda new
accountora transferofhismoney.“Partofthisis my
fault,”hesays.“Iwasn’tevenremotelysuspicious.”
AlysannPosner,a formervicepresidentofthe
ChicagoMercantileExchangewholivesinSan
Miguel,saysshehadtroublegettingtimelystate-
mentsfromMonexsincesheopenedheraccount
fouryearsago.OnDec. 18 shetriedtotransferher
fundstoanotherbank.Whenthetransferdidn’t
happenquickly,shestartedmakingcalls.Monex
toldhertheaccountandthatofhermother,who
is86,werereducedtoalmostnothing.Posner
saysMonexhasofferedherabout60%ofwhat
shebelievessheis owedandshe’ssuingMonexin
Mexicancourts.
Thebankhassettledwithsomecustomers,but
forlessthantheythinktheywereowed.CoryGray,
86,sayssheopeneda Monexaccountsixyearsago
andhasrecentlyhada toughtimegettingregular
statements.ShelastheardfromZavalaonDec. 18
andwaslatertoldbyMonexthatshehasnextto
nothinginheraccount.Monexofferedher70¢on
thedollar.Shetookit,afraidthatfightingMonex
wouldleaveherwithnocash.“IthoughtI would
getnothing,”Graysays.“That’swhyI settled.”
BruceBrown,a retiredsoundengineerfrom
Australia,says he got hisfull $250,000 back
afterfilinga complaintagainstZavalawiththe
ProcuraduriaGeneraldeJusticia.ButafterBrown
gothischeck,a Monexrepresentativecalledand
askedfor$50,000.Thebank,themansaid,had
overpaid.“Itoldthemtoshoveit,”Brownsays.
�DavidWelch,withJustinVillamilTHE BOTTOM LINE Financial fraud is exploding in Mexico, and
American expats with accounts at Monex appear to be among the
latest victims.Zavala, who worked for Monex about
20 years, became San Miguel’s banker of choice by
winning over expats with promises of fat returns
on accounts she claimed were dollar-denominated
and immune to the peso’s fluctuations. She was
local royalty: daughter of former Mayor Manuel
Zavala and his Texas-born wife, Taylor, an agent
for Christie’s International Real Estate.
The Machirs, after discovering their account
had been drained, met Loyola, the outside attor-
ney representing Monex. They say he blamed
Zavala; they also say she probably couldn’t have
committed any fraud alone. “Don’t worry. We
will make you whole again,” Kathy Machir recalls
Loyola saying. Almost four months later, with no
reimbursement in sight, the Machirs have been
liquidating assets. In January, Kathy cashed in
her life insurance policy, and in March they drove
their 2012 Subaru to the U.S. and sold it for $9,300
to pay their contractors.
Kenneth Karger, a retired dentist in Fort Worth
with property in Mexico, says Monex owes him
about $400,000. He stopped getting full statements
after June, as did the Machirs. Karger says Zavala
told him Monex was changing to a new online bank-
ing system and sent emails showing a plausible bal-
ance. Later, Karger went through statements he
retrieved from Monex and found unauthorized with-
drawalsandwiretransfers.
A notarizedletterthatKarger’sattorneysent
totopMonexexecutivesonApril15 lists 12 alle-
gations of fraud, including transferring money to
people whom the depositors didn’t know, mak-
ing unauthorized investments, and changing
account login information. “If a relatively low-
level employee can go into your account, change
your email address for notifications, change your
password,redirectdeposits,withdrawals,and
wiretransfers,”Kargersays,“thenyouhavea
kindergarten-levelsecuritysystemsafeguarding
tensofmillionsofdollars.”
HaroldHaynes,83,movedtoSanMiguel 22 years
ago from Kansas City, Mo. Zavala, he says, was one of
the first people he met. She pitched him on Monex
in 2004, promising security. Early on, his account
returned 14% with stocks such as Wal-Mart de
Mexico. Zavala would get him funds on short notice.
Haynes recommended her to friends. When Zavala
stopped returning calls in December, Monex told
him his account, which Zavala said held a substan-
tial sum, had less than $13,000. Haynes says when he
obtained his real statement, it showed money had
been transferred to people he didn’t know.
Monex says it owes him only the money currently
in the account, Haynes says. Company officials also“Part of this
is my fault. I
wasn’t even
remotely
suspicious”