US charges 3 with $155 mn investment fraud
Three operators of a defunct financial firm with clients in
the US, South America and Europe face prison sentences of up to 70 years for
their roles in an investment fraud scheme that resulted in losses of $155
million for clients, the Justice Department said on Thursday.
A three-count criminal indictment unsealed on Wednesday
charges Roberto Ripalda, Fernando Bergson and Ernesto Pazmino "with
conspiring to defraud investors and financial institutions as part of an
international fraud scheme stretching through the United States, South America,
and Europe," the department said in a press release.
"The defendants are each charged with conspiracy to
commit wire fraud, conspiracy to commit bank fraud, and conspiracy to commit
money laundering," the release said.
Federal agents arrested Weisson in Miami, while Cortes and
Haberer were arrested yesterday in Spain and Argentina, respectively, the
release added.
The defendants and their co-conspirators sold fake
proprietary investment products to clients of the firm they founded, Biscayne
Capital, and used the money to pay off other clients, the release said.
The scheme collapsed in September 2018, and Biscayne Capital
went into liquidation, causing more than $155 million in losses to the firm's
clients, the release said.
Each defendant faces a maximum penalty of 70 years in
prison, according to the release.
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