Conflict over vino: Fecovita executives stand trial for fabricated inventory records
In a significant development for the Argentine wine industry, Fecovita, the country's largest wine cooperative, is moving towards trial for alleged false balance sheets. The trial is expected to start in the coming weeks in Mendoza, Argentina.
At the heart of the case are seven accused leaders of Fecovita, including Rubén Panella, Eduardo Sancho, Jorge Iraneta, Marcelo Fabián Federici, Eugenio Portera Sánchez, Roberto Vázquez Lavagno, and Hilda Wilhelm Spanner de Vaieretti. They are joined by Juan José Retamero, a Spaniard who is a director of Evisa, a company associated with Fecovita, which is also accused of diverting more than 30 million dollars.
The accusations against the accused directors involve irregular accounting maneuvers, such as fictitious capital contributions, overvaluation of assets, and concealment of liabilities. If found guilty, they could face a two-year prison sentence, while the accused directors in this case risk up to 6 years in prison.
The trial is the result of a two-year investigation by the Economic Crimes Unit, led by Juan Ticheli. The official report, completed in March, detected serious inconsistencies in the 2021 and 2022 balance sheets. The first accounting expert report was suspended, and the official experts were pressured by Iberte's experts to complete it.
The Federation, representing the Argentine vitivinicultural cooperatives, claims that the evidence had not been fully analyzed before the procedural decision. They also argue that the right to defense has been violated in this case. If proven, these irregularities could amount to over 100 million dollars and harm the Spanish firm Iberte and the cooperativists.
Daniel Funes de Rioja, a person charged in connection with the false accounting against Fecovita and scheduled to appear in court next month, is another key figure in the case. The other case against Fecovita involves fraud and is expected to have a judicial resolution in 2026.
Retamero, the Spanish director of Evisa involved in the case, has stated that if he wins the lawsuit, he will donate the funds for economic and social development projects in Mendoza. The Argentine Vitivinicultural Cooperatives Federation plans to appeal the decision of Economic Crimes. A resolution regarding previous oppositions, such as the irregularities detected in the accounting report, has not yet been issued by the judge of guarantees. The imputados' declaration has not been allowed to be expanded in the case.
The trial against these seven accused leaders and Retamero will undoubtedly have far-reaching implications for Fecovita, Evisa, and the Argentine wine industry as a whole. As the case progresses, more details are expected to emerge, shedding light on the intricacies of the alleged financial misconduct.
