Ontario Superior Court rejects latest contempt motion filed by Itaipú pension fund (Cajubi)

The long-running civil proceedings initiated by the pension fund of the Paraguayan-Brazilian state-owned entity Itaipú Binacional (“Cajubi”) against Eduardo García in the Ontario Superior Court of Justice have suffered another major setback, raising serious questions about the credibility and purpose of the litigation after more than 15 years.

On May 5, 2026, Justice Osborne dismissed Cajubi’s most recent contempt motion against Mr. García, marking the third consecutive failed motion filed by Cajubi before the same judge since 2023.

Justice Osborne ruled:

“Having considered all of the evidence, I cannot conclude beyond a reasonable doubt that Mr. García is in contempt of paragraph 12 of the October 31, 2023 order, or that in all the circumstances such an order is appropriate in this case.”

The motion sought to hold Mr. García in contempt for publicly maintaining that:

a) He never received, managed, or controlled the alleged C$20.8 million at issue;

b) He never made payments to former Cajubi directors; and

c) He possesses no hidden assets or funds in any jurisdiction.

Cajubi failed to prove that these statements were false or defamatory.

This follows two earlier failed motions dismissed by Justice Osborne on October 31, 2023 and December 4, 2024. In those proceedings, Cajubi similarly sought contempt findings related to alleged accounting records and asset disclosures.

Over the course of the litigation, Cajubi has repeatedly claimed publicly that the Canadian proceedings would recover substantial sums allegedly linked to Mr. García. However, according to the defense, no such assets were ever identified or recovered despite more than 15 years of litigation and approximately C$30 million reportedly spent on legal fees.

The case faces renewed scrutiny due to unanswered questions about the funds' final destination and missing banking records, including Swiss accounts once held at Clariden Leu, now owned by Credit Suisse.

According to representatives supporting Mr. García, the Ontario proceedings were used to sustain a misleading public narrative in Paraguay while critical financial evidence and relevant parties were never fully pursued through discovery.

“This matter can only be clarified through full disclosure of the banking and financial records tied to the transactions at issue,” representatives stated. “The public deserves transparency regarding what happened to every dollar.”

The controversy extends beyond the litigation itself. Critics allege that the lawsuit became part of a broader effort to justify controversial changes to Itaipú’s pension system, including the imposition of a Chilean-style pension model that significantly increased pension-related costs borne by workers, retirees, and Paraguayan electricity consumers.

A formal complaint has reportedly been filed with the Canadian Judicial Council against judges involved in the proceedings, alleging judicial misconduct and participation in a broader cover-up. Additional complaints are expected to be filed before Paraguayan pension regulatory authorities.

The Ontario Superior Court case number is: CV-11-00009210-CL

Media Contact

Julio Benítez
Partner, Benítez Cubilla & Asociados
Ciudad del Este, Paraguay
Email: Email Contact
Phone: +595 983 669556

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On May 11, 2026, Paraguayan lawyer Julio Benítez, legal counsel for Eduardo García, 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.

Media Contact

Julio Benítez
Benítez Cubilla & Asociados
Ciudad del Este, Paraguay
Email: Email Contact
Phone: +595 983 669556

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What happens when a whistleblower exposes a multi-million-dollar fraud—only to become the prime suspect himself?

In Canada A Legal Paradise, the author unravels the astonishing true story of Eduardo García, a Guatemalan-born financial consultant who immigrated to Canada seeking safety and fairness. Instead, he found himself entangled in a 15-year legal nightmare spanning two continents.

From Paraguay to Canada, boardrooms to courtrooms, the machine moved swiftly: evidence disappeared, judges looked the other way, and powerful men closed ranks to protect billions at stake.

Canada A Legal Paradise is not fiction. It is the true story of how one man uncovered a massive fraud—and learned the hard way that, in Canada, justice is not blind. It’s bought.

The real crime wasn’t the fraud -it was the cover-up.

Canada a Legal Haven for Corrupt Foreign Entities: A true Canadian Latino story 15 years in the making Kindle Edition

Itaipú Binacional is not merely recognized as a global energy powerhouse and a Guinness World Records winner; it also stands as a prominent symbol of political corruption. This Brazilian-Paraguayan state-owned enterprise has faced numerous allegations of wrongdoing, particularly concerning its financial dealings and the governance of its pension fund (Cajubi https://cajubi.org.py/webcajubi/), resulting in a tarnished reputation. In this context, Itaipú Binacional is actively pursuing Eduardo García, demanding he account for over $20 million that a Canadian judge claims he defrauded from the pension fund. This ruling, however, is predicated on a conspiracy theory that falsely alleges García made bribe payments to directors overseeing the pension fund.

There's a significant issue with this demand for accountability: Eduardo García cannot provide the requested accounting because he never received the alleged sum of money. Moreover, the supposed bribes cited in the allegations simply do not exist. After more than 15 years of relentless pursuit, Itaipú's attempts to imprison Eduardo over any related actions have proven fruitless. Their current strategy appears to be driven by a desire to silence him, as he continues to expose the truth about the events surrounding this case, both in Canada and Paraguay.

The epic struggle between Eduardo and Itaipú cannot be adequately described as a simple case of David versus Goliath; it is far more complex, resembling a confrontation between David and Goliath, alongside an array of formidable adversaries.

This book is designed to consolidate insights from key figures who are well-versed in this matter.

About Julio Benítez

Julio Benítez is a Paraguayan criminal lawyer with 25 years of experience and postgraduate studies. He worked for 15 years at Itaipú Binacional, including as a legal consultant reporting to the Chief Legal Officer. He has worked on cross-border cases, including landmark cases, and has served as a university professor. Supreme Court of Paraguay license number: 9067. He resides in Ciudad del Este, Paraguay. Email Contact

For more information:

Eduardo García
(519) 577 3241
Email Contact
LinkedIn: https://www.linkedin.com/in/eduardoGarciaobregon/
Twitter (X): https://x.com/eg9609

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