Marcos Daniel Jiménez, United States Attorney for the Southern District of Florida, and Lorraine Johnson, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation, announced today that Philip Bilbao was arrested on charges of securities fraud, wire fraud, mail fraud, money laundering, and tax evasion. According to the Indictment, Bilbao sold investments in his Creative Actors and Co., which he falsely claimed was in the business of developing and producing movies.

Bilbao defrauded approximately forty-three investors out of roughly $2.3 million through his scheme. Among other victims, Bilbao preyed on members of his church, falsely advising them that Creative Actors produced Christian films. In reality, Bilbao used the monies obtained from investors for his own personal benefit at, among other places, Mayor’s Jewelers (approximately $402,000), the New Auto Toy Store (approximately $250,000), Fort Lauderdale Harley-Davidson (approximately $94,000), Mr. Santoro (approximately $86,000), Lauderdale Imports-BMW (approximately $67,000), and Maroone Ford (approximately $45,000). The Indictment further alleges that to perpetuate the fraud, Bilbao used some of the monies obtained from later investors to pay earlier investors a “return” on their investments. Finally, the Indictment charges Bilbao with evading a total of approximately $706,000 in federal income taxes for the tax years 1997 through 2000.

Bilbao faces a maximum sentence of ten years’ imprisonment on each of the securities fraud counts, five years’ imprisonment on each of the wire fraud counts, five years’ imprisonment on the mail fraud count, twenty years’ imprisonment on each of the money laundering counts, and five years’ imprisonment on each of the tax evasion counts.

Mr. Jiménez commended the investigative efforts of the Internal Revenue Service, Criminal Investigation. This case is being prosecuted by Assistant United States Attorney Robin S. Rosenbaum.