Canadian Judges Accused of Covering Up Itaipu Pension Fund Fraud

Paraguayan lawyer Julio Benítez, legal counsel for Eduardo García, has formally submitted a complaint to the Canadian Judicial Council (CJC) alleging that senior Ontario judges participated in and protected what he describes as a massive judicial fraud involving the state-owned Itaipu Binacional Pension Fund (Cajubi) and more than C$20.8 million in disputed investment losses. The complaint, addressed to Robin MacKay, accuses members of the Ontario Superior Court and Court of Appeal for Ontario of enabling false judgments, suppressing banking evidence, and protecting key financial actors linked to millions of dollars allegedly diverted through Swiss and Canadian accounts.

According to Benítez, the original Ontario trial judgment issued in 2018 was “corrupt, unenforceable, and null,” and has been used to wrongly portray García as responsible for the alleged disappearance of the funds, despite the absence of direct bank records proving he received or embezzled the money. “The judges continue demanding an accounting of money they themselves have helped conceal,” said Benítez. “This is not justice—it is a cover-up.”

The complaint specifically references repeated contempt proceedings led by Justice Osborne, alleging that the court has avoided ordering the disclosure of the very bank records necessary to establish where the funds actually went. Benítez argues that key evidence points instead to Swiss accounts controlled by Cajubi’s former investment consultant Ronald Timcke and other individuals whose financial records were never properly pursued. The court rulings were also used to silence García through repeated contempt proceedings and restrictions on public statements.

The case, widely described in Paraguay as the “heist of the century,” has had significant consequences for pension fund members and Paraguayan taxpayers, including major pension restructuring and projected long-term costs of hundreds of millions of dollars. Benítez also announced that a parallel complaint will be filed before Paraguay’s new Superintendency of Pensions and Retirement, requesting access to financial documents and an independent investigation into the pension fund actuarial deficit, losses and the tens of millions of dollars in legal fees paid over the past 15 years.

“We believe the truth lies in the bank records that judges and opposing counsel have worked so hard to keep hidden,” Benítez added. The legal team is calling for transparency, judicial accountability, and full disclosure of the bank records related to the disputed funds. The complaint specifically names Justices Sean F. Dunphy and Peter J. Oborne of the Ontario Superior Court and Justice David Paciocco of the Court of Appeal for Ontario. Case File: CV-11-00009210-CL.