(Adds details of charges, background)
WASHINGTON, Sept 30 The former chief executive
of defunct drug company Inyx Inc has been charged in
connection with a fraud scheme that caused more than $100
million in losses and led to the collapse of one of Puerto
Rico's largest banks, the U.S. Justice Department said on
Jack Kachkar, 53, of Key Biscayne, Florida, was charged with
eight counts of wire fraud in an indictment filed on Aug. 4 and
unsealed on Friday, the department said in a news release. It
said the scheme led to the closure of Westernbank Puerto Rico in
On Friday Kachkar was arrested and made his first court
appearance. He could not immediately be reached for comment.
According to the indictment, Kachkar, who served as Inyx
chairman and CEO from 2005 to 2007, caused fraudulent customer
invoices to be submitted as collateral for loans from
Westernbank and embezzled the proceeds for his personal use.
The Justice Department said Kachkar misappropriated about
$25 million to buy expensive real estate in Miami, luxury
vehicles and a private jet.
Inyx, which had been listed on the Nasdaq exchange, filed
for bankruptcy in 2007.
After the closure of Westernbank Puerto Rico, the Federal
Deposit Insurance Corporation arranged for its $8.6 billion of
deposits to be transferred to Banco Popular de Puerto Rico.
(Reporting by Eric Beech; Editing by Mohammad Zargham and