A Chilean businessman’s project, criticized for creating “vertical ghettos”—densely populated, high-rise buildings—has been sanctioned for illegally cutting down native forest in Villarrica. The project faced prior condemnation for its social impact, accused of segregating residents by socioeconomic status. Authorities have now penalized the developer for environmental damage caused by deforestation. The fine stems from the unauthorized felling of native trees to facilitate construction. This action violates Chilean environmental regulations protecting native forests. CIPER Chile first reported on the project and its associated concerns. The case highlights ongoing tensions between development and environmental preservation in Chile.