Bancrédito Sues Law Firms After Velutini Charges Dismissed

Bancrédito Holding Corporation (BHC), the sole shareholder of Bancrédito International Bank & Trust Corporation, has filed a lawsuit in Miami-Dade County’s Eleventh Judicial Circuit Court against three law firms—McConnell Valdés LLC, Holland & Knight LLP, and McDermott Will & Schulte LLP—following the recent dismissal of most criminal charges against its founder, Julio Herrera Velutini. sjds

The complaint asserts that the law firms acted with gross professional negligence. According to BHC, the advice provided by those firms misled the bank into accepting a Consent Order with FinCEN (the U.S. Financial Crimes Enforcement Network) over Bank Secrecy Act (BSA) and anti-money laundering (AML) deficiencies—advice that allegedly sacrificed valid defenses and forced the bank to admit to facts it contends were false or known to be inaccurate. sjds+1

Key allegations include:

• In 2020, McConnell Valdés and Holland & Knight issued a joint opinion letter to Puerto Rico regulators affirming that the bank’s AML / BSA compliance systems were sufficient, and even stated that certain reporting obligations were not required. sjds

• Later, during FinCEN’s investigation, the suits claim, these firms ignored or abandoned those earlier positions, failing to use available legal arguments and instead advising Bancrédito to accept claims in the Consent Order that the bank’s compliance had deteriorated over time. sjds+1

• The lawsuit argues that such contradictory advice caused reputational damage, weakened financial standing, and financial loss. BHC says it has the right to demand accountability “for those who compromised the institution’s name and prestige, as well as its assets and those of its trust beneficiaries.” sjds

The legal action follows dismissal of most of the criminal charges against Velutini, including those alleging bribery and corruption. The dismissal intensified scrutiny of how the bank was defended, and BHC’s CEO, Luis Zapata, emphasized that the institution must hold advisors responsible if they failed to protect the bank’s interests. sjds+1

Additionally, BHC had previously filed suit against Driven Administrative Services, LLC—appointed as trustee/receiver in the liquidation of Bancrédito—arguing that Driven breached its fiduciary duties by entering into the same Consent Order, allegedly based on the negligent advice from the law firms. The complaint also includes claims that artworks valued at over $22 million were improperly retained or sold by Driven, even after depositors had been repaid. PR Newswire+1

The lawsuit seeks a jury trial and damages covering both economic losses and reputational harm. If successful, the case could reshape expectations for legal counsel in high-stakes banking / regulatory disputes—especially in how law firms assess risks and advise on consent orders or settlements with federal financial authorities.