For years, Lili Pink became one of the most recognizable retail chains in Colombia. Its rapid expansion across shopping malls and commercial centers transformed the brand into a major player in the country’s women’s underwear and accessories market, while its growth into other Latin American countries strengthened its visibility even further. But behind that commercial success, Colombian authorities are now investigating what prosecutors describe as a possible financial and customs structure tied to alleged money laundering and smuggling operations.
The case escalated dramatically after the first arrest that took place this week. Colombian authorities detained Walter Francisco Martínez Martínez, a lawyer arrested in Barranquilla who prosecutors believe may have had a key role inside the business network currently under scrutiny. His detention represents the first major judicial breakthrough in a case that had reportedly remained under confidential investigation for more than four years before erupting into the national spotlight after massive raids across the country.
What initially appeared to be an isolated enforcement action has now evolved into one of Colombia’s most high-profile corporate investigations. As details continue emerging, attention is increasingly focused not only on the companies involved but also on the individuals prosecutors believe may have helped sustain the alleged structure behind the operation.
The nationwide operation that shook one of Colombia’s best-known retail brands
On April 27, Colombia’s Attorney General’s Office and CTI investigators launched simultaneous operations across 59 cities and 25 departments throughout the country. Authorities carried out searches, inspections, and precautionary measures targeting 405 stores, warehouses, properties, and companies allegedly connected to the investigation.
The scale of the operation immediately captured national attention. Large investigations into financial crimes are not uncommon in Colombia, but the fact that authorities targeted such a widely recognized retail brand gave the case unusual visibility. For many Colombians, Lili Pink had become a familiar presence in shopping centers and commercial districts over the past two decades, making the allegations especially shocking for consumers and the business sector alike.
According to prosecutors, the investigation seeks to determine whether several companies linked to the brand were allegedly used to facilitate smuggling and money laundering operations through shell companies, fragmented financial movements, and suspected customs irregularities. Authorities claim that some imported products under investigation included clothing, cosmetics, and toys that later entered the Colombian market through operations now being reviewed by judicial and tax authorities.
Part of the investigation also focuses on whether certain business structures were allegedly designed to obscure the origin of funds and complicate financial tracing. Colombian investigators believe the use of multiple companies may have allowed transactions to be dispersed in ways that reduced visibility for regulators and customs authorities.
The financial figures tied to the case are enormous. According to information revealed by Caracol Radio, the alleged money laundering scheme under investigation could exceed 730 billion Colombian pesos (roughly US$185 million), while suspected smuggling operations may amount to around 75 billion pesos (approximately US$19 million). Prosecutors are also examining a possible illicit enrichment scheme estimated at more than 430 billion pesos (equivalent to nearly US$109 million).
Those numbers quickly transformed the case from a corporate scandal into a national issue with broader implications for Colombia’s retail and textile sectors. Analysts say the investigation may become one of the largest recent financial crime cases involving the country’s commercial industry.
Walter Martínez: first arrest linked to the case and one of the central figures in the investigation
Until recently, Walter Francisco Martínez Martínez was virtually unknown outside legal and corporate circles. However, within the investigation, his name allegedly began appearing repeatedly during reviews of business registrations, corporate structures, and financial transactions connected to companies under scrutiny.
According to reports published by Caracol Radio and other Colombian outlets, Martínez is a lawyer who allegedly served as the legal representative for several companies now linked to the investigation. Prosecutors believe he may have formally represented at least seven businesses that authorities suspect were used as shell companies within the alleged structure.
Investigators reportedly reached Martínez after months of tracing corporate ties and identifying patterns that repeatedly surfaced across multiple financial and commercial operations. That trail eventually led authorities to Barranquilla, where he was arrested during the nationwide raids.
One reason investigators became increasingly interested in Martínez is that complex money laundering structures often rely on multiple companies operating simultaneously to fragment transactions and make financial tracking more difficult. Prosecutors now appear to be examining whether some of those alleged mechanisms may have existed within the broader structure tied to the case. Noticias Caracol also revealed another detail that drew attention to Martínez’s professional background. According to the outlet, just days before his arrest, he had reportedly passed a selection process with Colombia’s Special Assets Society, known as SAE, the government entity responsible for managing seized assets.
Authorities also reviewed his past legal activity. Noticias Caracol reported that in 2012 Martínez allegedly acted as legal counsel for Tierra Santa S.A.S., a company whose owner was arrested years ago in a separate money laundering investigation involving businesses tied to clothing, footwear, and toys. While that connection does not imply criminal liability in the current case, investigators are reportedly reviewing whether similarities exist between the two investigations. Prosecutors have additionally indicated that Martínez previously appeared in records connected to alleged smuggling-related offenses, although no final judicial determination has been issued regarding those references.
After his arrest, Colombian prosecutors charged Walter Martínez with money laundering, criminal conspiracy, and smuggling. However, Martínez pleaded not guilty and refused to accept the charges during preliminary hearings. The investigation remains in its early judicial stages, meaning Martínez still retains full presumption of innocence while courts determine whether prosecutors’ allegations can ultimately be proven. Nevertheless, the Attorney General’s Office requested that he remain detained while proceedings continue. According to Caracol Radio, prosecutors argued before the judge that Martínez could potentially flee if released during this phase of the investigation.
The hearings were partially placed under seal because of the volume of financial, commercial, and corporate evidence allegedly collected during more than four years of confidential investigation. Another development that attracted attention was the postponement of hearings after the defense requested additional time to review the evidence and prepare its legal strategy. Meanwhile, Martínez has reportedly appeared remotely from a medical facility after experiencing health complications following his arrest, a circumstance that also contributed to delays in the proceedings.
The next hearing is scheduled for May 11 and may become a key moment in determining whether Martínez will continue facing the process while detained.
The growing list of business figures connected to the case
Although Walter Martínez remains the only person arrested so far, the investigation has already brought additional corporate and business figures into public discussion.
One of the names mentioned in the case is Lorena Bernal Castro, legal representative of Fast Moda S.A.S., a company tied to Lili Pink operations in Colombia. Authorities are also examining the role of Colombian Panamanian businessmen Max Abadi and David Abadi, both historically linked to the expansion and consolidation of the brand. Prosecutors are attempting to determine how the alleged corporate structure may have functioned and whether different companies played specific roles within the operations now under investigation.
The case has also revived longstanding concerns about smuggling inside Colombia’s textile sector. For years, business associations and analysts have warned that under-invoiced imports and irregular merchandise flows distort fair competition and create massive tax losses for the government. Some experts believe this investigation could expose broader vulnerabilities within Colombia’s customs and commercial oversight systems. Part of the investigation is reportedly examining whether some companies involved may have requested VAT refunds while simultaneously participating in operations now being questioned by authorities.
Lili Pink insists there is no final ruling against the company
Following the raids and intense national media attention, Lili Pink released a public statement emphasizing that no final judicial ruling currently establishes criminal liability against the company.
The brand stated that it remains linked to ongoing criminal and asset forfeiture investigations but stressed that no conviction or definitive ruling has been issued against it so far. The company also questioned some of the financial figures publicly circulating in connection with the case, arguing that discrepancies exist between certain reported amounts and the actual administrative proceedings. Lili Pink further stated that all its merchandise is supported by import declarations and payments properly filed before the relevant authorities.
While stores continue operating under government oversight, attention is now focused on the upcoming hearings and on how far the investigation may ultimately expand. Beyond the legal outcome itself, the case has already triggered a broader debate in Colombia over customs enforcement, financial oversight, and the ability of authorities to detect sophisticated corporate structures allegedly used to move illicit funds through high-volume commercial sectors.