Police in Paraguay have raided the home of former President Santiago Pena as part of an investigation into a banking crisis that led to his removal from office and criminal charges against him. Last week, authorities intervened to seize Ueno Bank, a popular online lender that held accounts for nearly half of Paraguay's 6.5 million residents, along with more than $800 million in government funds.&nbsp;The bank's collapse sent shockwaves across the normally stable country, triggering street protests. Pena is currently being held in custody at a military facility. Pena, who took office in 2023, previously owned shares in Ueno Holding, the bank's parent company, before selling them last year. He is accused of abusing his presidential influence to direct millions of dollars in government deposits to Ueno Bank. He also allegedly concealed or played down the bank's financial difficulties despite receiving warnings about questionable loans and solvency concerns.&nbsp;Prosecutors confirmed in a statement that Pena's residence had been raided as part of the investigation into the bank's collapse. According to prosecutors, Ueno Bank accepted deposits from government institutions while issuing questionable loans to businesses associated with the bank's executives.&nbsp;Also Read: <a href="https://www.wionews.com/world/i-was-unfaithful-to-my-wife-nvidia-opens-investigation-after-ceo-jensen-huang-admits-affair-with-alleged-chinese-spy-1794188565871">'I was unfaithful to my wife': Nvidia opens investigation after CEO Jensen Huang admits affair with alleged Chinese spy</a>

<blockquote class="twitter-tweet">NEW: Paraguayan police raided former President Santiago Peña’s mansion on, discovering a vault hidden behind a false wall, reportedly equipped with an Israeli security system and iris scanner.

The raid is part of an investigation into alleged financial misconduct linked to Ueno Bank, which reportedly financed the $1 million-plus residence. https://t.co/lnabY6aPWA&mdash; Clash Report (@clashreport) <a href="https://x.com/clashreport/status/2119611014517846392?ref_src=twsrc%5Etfw">November 9, 2026</a></blockquote>
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Pena's mansion located outside Asuncion is also under investigation. The indictment alleges that he obtained two loans from Ueno Bank in 2024, worth approximately $500,000 combined, to finance the construction of the property. The charging document states that his monthly mortgage payment amounts to $38,000, six times his monthly salary as president. On Friday, the Senate voted to remove Pena from office, with Vice President Pedro Alliana taking over as his successor.&nbsp;Alliana said on Sunday that the government had reimbursed 1.2 million Ueno Bank customers whose funds were frozen following the bank's collapse. He said the payments had reached approximately $158 million so far, with the reimbursement process scheduled to continue this week.

Paraguay's former President Santiago Pena faces criminal charges after a police raid on his mansion amid the Ueno Bank collapse and banking crisis probe

Police in Paraguay have raided the home of former President Santiago Pena as part of an investigation into a banking crisis that led to his removal from office and criminal charges against him. Last week, authorities intervened to seize Ueno Bank, a popular online lender that held accounts for nearly half of Paraguay's 6.5 million residents, along with more than $800 million in government funds. The bank's collapse sent shockwaves across the normally stable country, triggering street protests. Pena is currently being held in custody at a military facility. Pena, who took office in 2023, previously owned shares in Ueno Holding, the bank's parent company, before selling them last year. He is accused of abusing his presidential influence to direct millions of dollars in government deposits to Ueno Bank. He also allegedly concealed or played down the bank's financial difficulties despite receiving warnings about questionable loans and solvency concerns. Prosecutors confirmed in a statement that Pena's residence had been raided as part of the investigation into the bank's collapse. According to prosecutors, Ueno Bank accepted deposits from government institutions while issuing questionable loans to businesses associated with the bank's executives. Also Read: 'I was unfaithful to my wife': Nvidia opens investigation after CEO Jensen Huang admits affair with alleged Chinese spy

Paraguay's ex-President Santiago Pena faces criminal charges as a Ueno Bank collapse probe leads to a raid on his mansion and his removal from office

Paraguay's ex-President Santiago Pena's mansion raided amid Ueno Bank collapse investigation

Pedro Alliana took over as Paraguay's president on Friday following the impeachment of his predecessor, Santiago Pena, over a major banking crisis that left nearly half the country's population unable to access their accounts. Senators appointed Alliana, who previously served as vice president, shortly after voting to remove Pena following the chaotic collapse of a bank with which he had links.&nbsp;Senate President Basilio Nunez declared Pena guilty of poor performance in his duties after 44 of the 45 senators voted in favour of impeachment. One senator was absent. Hundreds of people gathered outside Congress and loudly celebrated Pena's removal from office. "Justice has been done. Now we want him to give us back our money and go to jail," Jessica Aquino, 32, told AFP.&nbsp;Minutes after his impeachment, Paraguayan authorities placed the former president under house arrest, prosecutor Silvia Margarita Gonzalez Vester told reporters. Alliana pledged that the government would not abandon the nearly three million depositors, including pensioners, affected by Ueno Bank's takeover amid concerns over its insolvency.&nbsp;"Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," Alliana said. He will remain president until 2028. Opposition lawmakers had also submitted a motion seeking Alliana's impeachment over the crisis, but the proposal failed to secure congressional approval.<h3>Money begins returning to depositors</h3>The collapse of the bank triggered street demonstrations, with thousands demanding accountability from US-backed Pena. Until last year, he held a stake in Grupo Vazquez, the company that controlled Ueno. A Central Bank official told AFP that advance payments to an unspecified number of affected depositors started on Thursday afternoon. Jose Maciel of the Central Bank's Deposit Guarantee Fund said the first phase of payments, amounting to approximately $1,600, would be directed to customers who have no outstanding loans and maintain accounts with another bank or financial institution in Paraguay to receive the money.&nbsp;The remaining beneficiaries "will be announced progressively over the course of the payment process," he added. Although Pena had offered to resign following the banking crisis, lawmakers continued with impeachment proceedings, resulting in the removal of his political immunity. The opposition accused the US-backed politician of having a conflict of interest, an allegation he denied.&nbsp;The Attorney General's office confirmed that it was investigating him for acts related to the supervision and resolution of Ueno Bank S.A. and the placement of public funds in said entity. Prosecutor Gonzalez Vester said Pena would be questioned on Saturday over alleged crimes involving breach of trust, influence peddling and misappropriation of funds.Shortly before his removal, Pena called for national unity in a post on X.&nbsp;"Today, we must come together as Paraguayans to rebuild our institutions and restore trust," he said. The US Embassy in Paraguay expressed "its solidarity with the Paraguayan people" on Friday but made no reference to the country's president.<h3>Protests demand Pena's imprisonment</h3>"Pena in prison," read one of the protest signs displayed outside Congress on Friday. Thousands of people had taken to the streets for a third consecutive night on Thursday in Asuncion and other cities, demanding the return of their money. "Santiago Pena has hurt so many Paraguayans, so many families, business owners and small business people, including my own son, who had savings in Ueno Bank," Cynthia Farina told AFP during a demonstration in the capital.&nbsp;Police dispersed the protest using tear gas and water cannons. Ueno initially operated as a small fintech company with a digital-first business model that attracted low-income customers. It subsequently expanded into a major bank, managing state pensions and accounts belonging to several government entities. The scandal has already resulted in the departures of Central Bank President Carlos Carvallo and Interior Minister Enrique Riera. Meanwhile, eight Ueno executives have been arrested.&nbsp;Police also carried out raids on several locations associated with Grupo Vazquez on Wednesday and Thursday. The crisis also affected neighbouring Argentina, where approximately 1,000 employees of technology company ITTI, part of Grupo Vazquez, were suspended for 30 days without pay.&nbsp;The fallout extended to football as well. Ueno Bank sponsors several first-division football clubs and Paraguay's national team. "We were also victims of this situation," members of the national team said in a statement posted on X.

Pedro Alliana takes over as Paraguay's president after Santiago Pena is impeached over the Ueno Bank collapse, which left millions of depositors affected

Pedro Alliana took over as Paraguay's president on Friday following the impeachment of his predecessor, Santiago Pena, over a major banking crisis that left nearly half the country's population unable to access their accounts. Senators appointed Alliana, who previously served as vice president, shortly after voting to remove Pena following the chaotic collapse of a bank with which he had links. Senate President Basilio Nunez declared Pena guilty of poor performance in his duties after 44 of the 45 senators voted in favour of impeachment. One senator was absent. Hundreds of people gathered outside Congress and loudly celebrated Pena's removal from office. "Justice has been done. Now we want him to give us back our money and go to jail," Jessica Aquino, 32, told AFP. Minutes after his impeachment, Paraguayan authorities placed the former president under house arrest, prosecutor Silvia Margarita Gonzalez Vester told reporters. Alliana pledged that the government would not abandon the nearly three million depositors, including pensioners, affected by Ueno Bank's takeover amid concerns over its insolvency. "Compatriots who are now going through a difficult time as a result of the financial collapse will be fully compensated," Alliana said. He will remain president until 2028. Opposition lawmakers had also submitted a motion seeking Alliana's impeachment over the crisis, but the proposal failed to secure congressional approval. Money begins returning to depositors The collapse of the bank triggered street demonstrations, with thousands demanding accountability from US-backed Pena. Until last year, he held a stake in Grupo Vazquez, the company that controlled Ueno. A Central Bank official told AFP that advance payments to an unspecified number of affected depositors started on Thursday afternoon. Jose Maciel of the Central Bank's Deposit Guarantee Fund said the first phase of payments, amounting to approximately $1,600, would be directed to customers who have no outstanding loans and maintain accounts with another bank or financial institution in Paraguay to receive the money. The remaining beneficiaries "will be announced progressively over the course of the payment process," he added. Although Pena had offered to resign following the banking crisis, lawmakers continued with impeachment proceedings, resulting in the removal of his political immunity. The opposition accused the US-backed politician of having a conflict of interest, an allegation he denied. The Attorney General's office confirmed that it was investigating him for acts related to the supervision and resolution of Ueno Bank S.A. and the placement of public funds in said entity. Prosecutor Gonzalez Vester said Pena would be questioned on Saturday over alleged crimes involving breach of trust, influence peddling and misappropriation of funds. Shortly before his removal, Pena called for national unity in a post on X. "Today, we must come together as Paraguayans to rebuild our institutions and restore trust," he said. The US Embassy in Paraguay expressed "its solidarity with the Paraguayan people" on Friday but made no reference to the country's president. Protests demand Pena's imprisonment "Pena in prison," read one of the protest signs displayed outside Congress on Friday. Thousands of people had taken to the streets for a third consecutive night on Thursday in Asuncion and other cities, demanding the return of their money. "Santiago Pena has hurt so many Paraguayans, so many families, business owners and small business people, including my own son, who had savings in Ueno Bank," Cynthia Farina told AFP during a demonstration in the capital. Police dispersed the protest using tear gas and water cannons. Ueno initially operated as a small fintech company with a digital-first business model that attracted low-income customers. It subsequently expanded into a major bank, managing state pensions and accounts belonging to several government entities. The scandal has already resulted in the departures of Central Bank President Carlos Carvallo and Interior Minister Enrique Riera. Meanwhile, eight Ueno executives have been arrested. Police also carried out raids on several locations associated with Grupo Vazquez on Wednesday and Thursday. The crisis also affected neighbouring Argentina, where approximately 1,000 employees of technology company ITTI, part of Grupo Vazquez, were suspended for 30 days without pay. The fallout extended to football as well. Ueno Bank sponsors several first-division football clubs and Paraguay's national team. "We were also victims of this situation," members of the national team said in a statement posted on X.

Pedro Alliana becomes Paraguay's president after Santiago Pena's impeachment over a banking crisis that affected millions of depositors

Pedro Alliana becomes Paraguay interim president after Santiago Pena's impeachment over banking crisis

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Paraguay's ex-President Santiago Pena's mansion raided amid Ueno Bank collapse investigation

Pedro Alliana is Paraguay's interim president after Santiago Pena's impeachment