Every day, new victims of the so-called "promissory note mafia" emerge in Paraguay, a fraudulent scheme that has caused significant losses to families and small business owners. A recent case involves a family that lost their home over a debt of just 15 million guaraníes, an amount representing roughly 1% of the property's value. This situation highlights the slowness of the justice system in providing effective responses to victims.
The scheme consists of law firms buying up promissory notes — known locally as "pagarés," a type of negotiable instrument used as a credit guarantee — that were never picked up by customers who had already settled their debts, mainly with appliance companies, and then executing automatic wage garnishments through court proceedings. The fraud is aided by the complicity of judicial system officials, which makes it difficult to hold those involved accountable.
Recently, Paraguayan senators from the Senate Special Committee met with victims in Ciudad del Este, where they identified new forms of fraud. One prominent case involves an agricultural firm that, even after its closure, allegedly sold promissory notes worth approximately 200 million US dollars. Related documents are reportedly held by a US-based financial institution that is not registered or taxed in Paraguay. Rural producers who had already paid off their debts continue to be affected, as the promissory notes were never returned and were instead negotiated with financial institutions.
A concrete example is that of Sergio Daniel Ruiz Díaz and his wife, who were listed in the Informconf (Equifax SA) database for a debt that was not theirs. The alleged initial debt of 150,000 guaraníes ballooned to 4 million in two years, preventing them from obtaining credit or continuing their work activities. When they attempted to pay, they were told they had to settle an amount nearly 3,000% higher than what was originally recorded.
The Victims' Coordinating Body denounces that the scheme is growing and now targets not only wages and pensions but also rural properties, homes, and commercial establishments belonging to farming communities, entrepreneurs, and small business owners. Auctions and evictions are carried out through "secret trials," leaving families completely defenseless.
Attorney Jorge Rolón Luna, who publicly exposed the promissory note mafia, explains that debt notifications are served when the debtors are not present, which generates artificially accumulated interest and fictitious default charges. He reports that the scheme involves collection agencies, credit houses, law firms, and attorneys who are fully aware of the mass fraud.
This case underscores the urgent need for the Paraguayan justice system to act more efficiently and responsibly, ensuring reparations for victims and punishing those responsible, including corrupt officials and companies involved.