ECUADOR · COURTS & ENERGY
Key Facts
- —What is happening Ecuador’s state power company Celec is suing Progen, a Florida generator firm, in a US federal court. A separate criminal case in Quito reaches a preparatory hearing on Monday, 9 November.
- —Why it matters Both cases concern emergency power contracts signed during Ecuador’s 2024 blackout crisis. Celec alleges used generators were sold as new, and prosecutors say the plants never ran.
- —The numbers Celec paid a 70% advance of US$104.37 million on contracts worth about US$149 million. A US jury trial is scheduled for the August 2027 term.
- —Who is who Celec is Ecuador’s state electricity company and the plaintiff. Progen Industries LLC, based in Florida, is one of the defendants and calls Celec’s court requests harassment.
- —What to watch The Quito hearing, scheduled for 9 to 20 November, covers the 30 accused. In Florida, document discovery is due by 1 February 2027.
- —What it means for you A foreign state is using a US federal court and US racketeering law against a Florida company. Ecuador uses the US dollar, so every amount at stake is in dollars.
- —Power Index Ecuador ranks 8th of 14 in The Rio Times Latin America Power Index, with 38.2 points (October 2026 edition).
A state-owned power company in Ecuador is suing a Florida firm in a US court. Prosecutors in Quito run a separate criminal case over the same contracts.
Ecuador’s state power company is suing a Florida firm in a US court over two emergency generator contracts worth about US$149 million. Celec paid a 70% advance of US$104.37 million, and Ecuadorian prosecutors put the loss to the state above US$104 million.
The same contracts are the subject of a criminal case in Quito, where 30 people are being prosecuted. Their preparatory trial hearing opens on Monday, 9 November, and is expected to run to Friday, 20 November.
What the Florida Lawsuit Says
Celec filed the suit on Monday, 15 December 2025, in the federal court in Tampa, Florida, as case number 8:2025-cv-03433. It uses RICO, the US racketeering law that lets plaintiffs sue alleged criminal enterprises for damages.
The docket lists Progen Industries and several other companies and individuals as defendants. It also lists counterclaims against Celec by Progen and other defendants.
Celec alleges that Progen overstated its experience and delivered used generators, some repainted to hide rust and earlier use. These are allegations, not court findings.
Progen asked the court in August to block more subpoenas and has called Celec’s requests a harassment campaign. Its full answer to the fraud claims is not set out in the reports reviewed.
What the Judge Decided in August
In August a US magistrate judge in Tampa, Sean Flynn, let Celec pursue seven of nine subpoenas to third parties. The subpoenas aim to trace where the advance went.
He set aside two subpoenas that sought financial information directly from individual Progen employees. Celec’s subpoenas target companies and banks, so US financial records may help trace the money.
The court’s scheduling order of 19 February 2026 closes document discovery on Monday, 1 February 2027. It sets a jury trial for the August 2027 term, starting Monday, 2 August 2027, in Tampa.
The Criminal Case in Quito
A judge set the preparatory hearing for 9 to 20 November at the criminal courts in Quito. It is the stage that prepares the trial of the 30 people being prosecuted.
Prosecutors say the plants at Salitral (100 megawatts) and Quevedo (50 megawatts) never entered operation. Local reports describe the contracts as a failed purchase of generators during the 2024 energy crisis.
What It Means for US Readers
Celec alleges that Progen bought used generators from a seller in Houston, Texas, and from another in India. The case is heard in a US court, so American rules decide what evidence Celec can demand.
Ecuador uses the US dollar as its currency, so the advance, the subpoenas and any damages are all counted in dollars. Foreign states that sue in US courts can also face counterclaims, as Celec does here.
Background is in the Ecuador news hub and the report on a blackout suspect arrested in Spain. See also the analysis of the power deficit and the guide to who runs Ecuador’s economy.
What Is Not Known
A new Florida filing, reported by Ecuadorian media this week, could not be checked against the docket and is not used here. The docket copy read for this report dates from 12 June 2026, so later rulings may differ.
The content of the counterclaims against Celec and Progen’s detailed answer to the fraud claims are not publicly known. The 30 accused in Quito are presumed innocent, and no court has found anyone liable or guilty.
What Comes Next
The Quito preparatory hearing begins on Monday, 9 November, and runs to Friday, 20 November. In Florida, document discovery is due by 1 February 2027, with a jury trial set for August 2027.
Watch for new Florida rulings on subpoenas and for the outcome of the Quito hearing. Neither court has so far found anyone liable or guilty.
Frequently Asked Questions
What is the Progen case?
Celec, Ecuador’s state power company, is suing Progen, a Florida firm, over two emergency generator contracts signed in 2024. Celec alleges used equipment was sold as new.
How much money is involved?
Celec paid a 70% advance of US$104.37 million on contracts worth about US$149 million. Ecuadorian prosecutors put the loss to the state above US$104 million.
When are the hearings and the trial?
The preparatory hearing for 30 accused in Quito runs from 9 to 20 November 2026. A US jury trial is set for the August 2027 term in Tampa.
What is RICO?
RICO is a US federal racketeering law that lets plaintiffs sue alleged criminal enterprises for damages. Celec uses it in its Florida lawsuit.
Who is Celec?
Celec is Ecuador’s state-owned electricity corporation. It runs much of the country’s power generation.
Sources: US District Court, Middle District of Florida, docket of CELEC EP v. A.P. Inspections LLC et al., case 8:2025-cv-03433 (public docket copy, last updated 12 June 2026); Ecuadorian news site report on the Quito hearing dates and 30 accused, 12 October; Ecuadorian magazine report on the subpoena ruling and contract values, 21 August; Guayaquil daily report on the subpoena dispute, 6 August; Guayaquil daily report on Celec’s evidence in Florida, 31 July; Manabí daily report on the lawsuit, 17 December 2025 (all accessed 28 October 2026).
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error