Bancrédito Holding Corporation (BHC) — the sole shareholder of Bancrédito International Bank & Trust Corporation — has filed a derivative lawsuit against three major international law firms: McConnell Valdés LLC, Holland & Knight LLP, and McDermott Will & Schulte LLP. The action, filed in Miami-Dade County’s Eleventh Judicial Circuit Court, seeks a jury trial and damages over legal representation that allegedly resulted in a $15 million U.S. Treasury FinCEN fine.
BHC Accuses Law Firms of Malpractice in FinCEN Settlement
According to the complaint, the law firms committed serious legal malpractice during negotiations with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN). The lawsuit alleges that the firms advised Bancrédito to abandon valid defenses and accept a Consent Order admitting to facts that were inaccurate — despite the attorneys’ knowledge of prior legal opinions contradicting those claims.
“Those who, instead of protecting the bank and its shareholders, acted negligently and caused reputational and financial damage must now be held accountable,” said Luis Zapata, CEO of BHC. “Bancrédito has always defended its name and its stakeholders. It is time to establish responsibility for the harm caused to the institution and the trust it serves.”
Contradictory Legal Opinions Highlighted in the Filing
The lawsuit cites a 2020 joint opinion letter from McConnell Valdés and Holland & Knight to Puerto Rico regulators, in which the firms confirmed that Bancrédito’s AML and BSA compliance programs were adequate and that certain reports were not required.
However, when FinCEN later launched an investigation, the same firms allegedly reversed their position, failed to advance available defenses, and advised the bank to accept a Consent Order that claimed its compliance systems had deteriorated. The complaint argues that this advice was inconsistent with the firms’ earlier findings, which had concluded the programs were sufficient and even improving.
Previous Litigation Against Court-Appointed Receiver
This lawsuit follows another legal action brought by BHC in 2023 against Driven Administrative Services, the receiver that acted as Bancrédito’s board during liquidation. That case — currently under appeal in Puerto Rico — alleges that Driven breached fiduciary duties by accepting the FinCEN Consent Order based on negligent legal advice.
BHC’s complaint also asserts that after all depositors were repaid in early 2023, remaining assets should have reverted to Bancrédito and its shareholder. Instead, Driven allegedly retained or sold works of art worth more than $22 million, despite no outstanding depositor obligations.
