Unraveling the 'Cow Bond' Scandal: Uruguay's Massive Livestock Fraud Exposed

A criminal investigation has been initiated against Uruguay’s Conexión Ganadera over defrauding thousands of investors in a cow bond scheme. The firm, central to a $350 million scandal, is accused of fraudulent financial practices. Co-founder Pablo Carrasco faces charges, while other key figures are under scrutiny or house arrest.

A Uruguayan court launched a criminal investigation Thursday into Conexión Ganadera, a livestock investment firm accused of defrauding investors in a multi-million dollar 'cow bond' scheme. This represents a key advancement in one of Uruguay's biggest financial scandals.

Conexión Ganadera, the largest among three collapsed cattle investment firms, had attracted nearly 6,000 investors with promises of income from livestock ownership. The companies' downfall in late 2024 resulted in estimated losses of about $350 million, primarily from Conexión Ganadera.

Charged with fraud and money laundering, Conexión Ganadera co-founder Pablo Carrasco was deemed a flight risk and detained pending trial. The investigation involves uncovering the mishandling of funds, which did not always go towards livestock investment, leaving investors with nonexistent 'phantom cows.'

(With inputs from agencies.)