After parting from Hojeda, whom he had so generously assisted, Nicuessa met a few days afterwards with as great misfortunes at sea as Hojeda had encountered by land; for he was tossed by a dreadful tempest from without, and betrayed within by Lopez de Olano, who, perceiving the squadron separated by the storm, took one of the largest ships into the river Chagre, and left his patron to shift for himself. After some unlucky adventures, Olano arrived at Veragna, which was their place of rendezvous, where he endeavoured to persuade the people to abandon their original design as impracticable, and to sail for Hispaniola to make the most of what they had left, alleging that Nicuessa had certainly perished with all his men. While meditating upon this project, a boat came into the port with four men, who reported that Nicuessa had been stranded on an unknown coast, and after marching a great way by land with incredible fatigue, was now not far off, but that he and his followers were in a very miserable condition. On hearing this melancholy account, Olano relented, and immediately sent back the boat with provisions and refreshments, which came very opportunely to save Nicuessa and his men from starving, which they certainly must have done without this seasonable relief. Yet this did not in the least soften his resentment against Olano for deserting him, whom he would have hanged, if he had not been afraid of irritating the men, and instead of that he put him in irons, threatening to send him to Spain in that condition. The authority, however, did not remain long in his hands; for, endeavouring to establish a settlement on the Bethlehem river, he was so straitened for provisions, that he was obliged to leave a part of his men there, and to sail with the rest to Porto Bello; but, not being allowed by the Indians to land there, he was obliged to proceed four or five leagues farther to the port which Columbus named Bastimentos. Immediately on entering he exclaimed, Paremos aqui en el nombre de Dios, Let us stay here in the name of God. He immediately landed and began to erect a fortress, which was named Nombre de Dios, from the above mentioned expression. He had not been long here till he found himself as much straitened for provisions as at Bethlehem, on which account he sent one of his ships to St Domingo to request assistance from the governor. Scarcely was this vessel out of the port, before that with Colmenares arrived from the river Darien, with the invitation to take the command of the Spanish colony at that place. Colmenares and his men were so astonished to see the miserable condition of Nicuessa and seventy of his people, who were all that remained with him at Nombre de Dios, that they shed tears. They were lean, ragged, and barefooted, and excited pity by the recital of the intolerable distresses they had undergone, and the numbers of their companions who had already died.

Colmenares did all he could to comfort Nicuessa, telling him that the people of Darien wished him to come and assume the government of that colony, which was situated in a fine country abounding in provisions, and which did not want gold. Nicuessa began to recover his spirits, by the seasonable supply of provisions, and the comfortable intelligence brought by Colmenares, and gave thanks to God for this merciful relief. But he soon forfeited the reputation for prudence which he had formerly enjoyed among the colonists of Hispaniola; as, forgetting the miserable condition from which he was so recently relieved, and not considering that the people of Darien had submitted to his authority of their own free will, he foolishly declared in public that he would take all their gold from them on his arrival, and would even punish them for encroaching on his province. This news soon spread abroad, and heaven had the imprudence to send a caravel before him to Darien, having a desire to examine some islands which lay in the way thither. That same night, Olano, who still remained a prisoner, conversed with some of the people who came from Darien, to incense them against Nicuessa; and when Nicuessa was embarking, he said to some of those who were in his confidence, "Nicuessa fancies he will be as well received by Hojedas men, as by us after his shipwreck at Veragua, but he will probably find a considerable difference." James Albetes and the bachelor Corral were in the caravel which went before, and gave notice to the colonists at Darien of the threats which Nicuessa had made, of taking away their gold and punishing them; saying that his misfortunes had rendered him peevish and cruel, abusing all who were under his authority. From the little islands which he had stopped to explore, Nicuessa sent one Juan de Cayzedo to acquaint the colony at Darien of his approach; and this man being privately his enemy, still farther exasperated the people against him, so that they came to a resolution not to admit him into the colony. This resolution was principally forwarded by Balboa, who secretly advised all the principal people to exclude him, yet declared in public that he was for receiving Nicuessa, and even got the public notary to give him a certificate to that effect199.

After spending eight days among these islands, where he took a few Indians for slaves, Nicuessa made sail for Darien. On coming to the landing-place, he found many of the Spaniards on the shore waiting his arrival; when, to his great surprise, one of them required him in the name of all the rest, to return to his own government of Nombre de Dios. Nicuessa landed next day, when the people of Darien endeavoured to seize him, but he was extraordinarily swift of foot, and none of them could overtake him. Balboa prevented the colonists from proceeding to any farther extremities, fearing they might have put Nicuessa to death, and even persuaded them to listen to Nicuessa, who entreated them, since they would not receive him as their governor, that they would admit him among them as a companion; which they peremptorily refusing, he even requested them to keep him as a prisoner, for he would rather die than go back to starve at Nombre de Dios. In spite of every thing he could urge, they forced him to embark in an old rotten bark, with about seventeen of his men, ordering them to return to Nombre de Dios, on pain of being sunk if they remained at Darien. Nicuessa and his people accordingly set sail, but were never seen more, and no one knew what became of them. There was a story current in the West Indies, that when the Spaniards came afterwards to settle the island of Cuba, they found inscribed on the bark of a large tree, "Here the unfortunate Nicuessa finished his life and miseries."

The admiral Don James Columbus was much blamed for not endeavouring to give succour to these adventurers, although the grants which they had received of separate governments were in direct contradiction to his just rights. His enemies made use of this to his prejudice at the court of Spain, which was always jealous of him, and listened therefore with much complacency to every complaint that was proffered against him. He on the other hand, was very sensible of the disposition of the court, and used every means he could think of to secure his rights in these countries, pursuant to the agreement which had been made with his father. In this view, having learnt that the court was desirous of discovering and colonizing the great island of Cuba, although there were no accounts of any rich mines in that country, he resolved to be beforehand with the court, and sent a body of men there at the beginning of the year 1511, under a confidential person; that having a lieutenant there of his own, the court might have no pretence for granting it away to new undertakers, as they had done that part of the continent which was discovered by his father, and even the island of Jamaica, which last, however, he had recovered. For this purpose, he made choice of James Velasquez, who was the wealthiest and best beloved of all the Spanish inhabitants of Hispaniola, and was besides a man of experience, and of a mild and affable temper, who knew well how to maintain his authority. As soon as it was known in Hispaniola that Velasquez was going to establish a settlement in Cuba, abundance of people resolved to bear him company, some of them from attachment to his person, and others because they were involved in debt. All these rendezvoused at the town of Salvatierra de la Zavana, at the western extremity of Hispaniola, whence they proposed to embark for Cuba.