Introduction to CAME and its Financial Troubles
CAME, or Sociedad Financiera Internacional de Crédito Mexicano, was a financial institution that faced severe insolvency issues. A significant portion of this trouble stems from an 800 million peso debt, which may have been part of broader obligations to both commercial and developmental banks. This debt reportedly went to the FIRA, a set of public trusts managed by Mexico’s government through the Bank of Mexico.
Background on CAME and its Relationship with Banks
Over three decades, CAME maintained a strategic partnership with developmental banks like Nacional Financiera, FIRA, and the Sociedad Hipotecaria Federal. Pablo Varela, CAME’s executive director, acknowledged this relationship during a 2024 press conference.
Unraveling Financial Misconduct
A former employee, speaking on condition of anonymity, detailed a series of unethical and fraudulent practices that escalated CAME’s financial crisis.
- Fictitious Loans: CAME allegedly issued loans that were never funded, having clients sign promissory notes without providing the agreed-upon funds. This tactic aimed to misrepresent financial statements, showing loan placements that didn’t actually exist.
- Misleading Regulators: These fictitious loans were used to deceive financial regulators, making it appear that CAME had a robust capitalization level (Nivel de Capitalización or Nicap) when, in reality, it was far below the optimal threshold.
- Concealed Debt Levels: Despite showcasing a positive capitalization indicator, CAME’s financial situation was dire. The institution could not cover its obligations to investors, shareholders, suppliers, or employees.
The Collapse of CAME’s Financial Façade
By early 2025, the façade of CAME’s financial stability began to crumble. The company ceased reporting financial information and eventually halted operations in 50 service centers across 17 Mexican states.
The former employee claims that these malpractices had been ongoing for at least three years, starting with the merger of CAME and Sofipo Te Creemos under the holding company Te Creemos in 2018.
This merger, according to the whistleblower, allowed Te Creemos to manipulate and misrepresent financial information presented to regulatory bodies like the Comisión Nacional Bancaria y de Valores (CNBV).
Key Questions and Answers
- What was the main cause of CAME’s insolvency? An 800 million peso debt, possibly part of broader financial obligations to various banks, is alleged to have triggered CAME’s insolvency.
- What were some of the unethical practices employed by CAME? CAME allegedly issued fictitious loans, misled regulators with false capitalization levels, and concealed its true debt situation.
- How did these malpractices come to light? CAME ceased reporting financial information and eventually halted operations, exposing the extent of its financial troubles.
- When did these issues begin, according to a former employee? The whistleblower claims that these malpractices had been ongoing for at least three years, starting with the merger of CAME and Sofipo Te Creemos in 2018.
