Christopher Gaytan

This appeal concerned a massive fraud perpetrated against a Paraguayan pension fund (Cajubi) by the appellants.

The trial judge found the appellants liable for fraudulent misrepresentation and breach of fiduciary duty, awarding over $20 million in damages and punitive damages.

On appeal, the appellants raised numerous grounds, including the corporate identification doctrine, limitation periods, unpleaded conspiracy, lack of reliance, and apprehension of bias.

The Court of Appeal dismissed all grounds, affirming the trial judge's findings, particularly regarding the inapplicability of corporate attribution where it would undermine the integrity of the legal system and allow fraudsters to benefit.

The plaintiff brought a motion to find the defendant in contempt of court for violating freezing orders issued following a trial that found the defendant liable for a $7.3 million fraud.

The court found beyond a reasonable doubt that the defendant had actual knowledge of the clear and unequivocal orders, yet intentionally failed to disclose his worldwide assets and actively dissipated hundreds of thousands of dollars to offshore accounts and third parties.

The defendant was found guilty of civil contempt and sentenced to 50 days of incarceration, with a subsequent hearing scheduled to determine if he could purge his contempt and mitigate his final sentence.