Individual Found Guilty Of Operating “Ponzi” Scheme, Securities And Bank Fraud
Forfeiture allegation of $2,900,000 dollars
SAN JUAN, P.R. – A jury found defendant Carlos Maldonado, owner of Business Planning Resources International Corporation (BPRIC), Glorimar Fashions and Tailoring, LLC, Global Business Insurance Agency Inc., and associated under the incorporation documents with Pet Card Systems, Inc., and Datavos Corporation, guilty of securities fraud and bank fraud, announced today W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The case was presided by United States District Court Chief Judge Gustavo A. Gelpí. The sentencing was scheduled for May 2020.
On October 27, 2016, Maldonado was charged with sixteen counts of securities fraud and bank fraud. From on or about the year 2007 through the year 2012, Carlos Maldonado along with other individuals raised over $5,000,000 on behalf of BPRIC, from over one hundred individuals, and other businesses and investments; resulting in losses to investors exceeding $2,900,000. As part of the solicitation, individuals throughout Puerto Rico and the Continental US received Investment Contracts that were signed by Maldonado and his associates.
The defendant was found guilty on all counts. During trial, the government presented checks, bank records, emails, other documentary evidence, and witness and victim testimonies that proved that the defendant made or caused materially false and misleading representations to be made to investors, including: (i) that various companies were involved in legitimate business functions; (ii) failing to disclose to investors that their funds would be used to buy and trade stocks and commodities on a ScottTrade account, Foreex Capital markets, LLC, and other personal trading accounts, and for Maldonado’s family and expenses; (iii) purchase goods and services at retail stores, restaurants, and spend money for travel, rent, entertainment, and personal auto loan payments.
“The defendant’s conduct undermined the confidence investors place in the financial markets,” said US Attorney Muldrow. “Financial markets are governed by rules that are supposed to protect investors. This defendant, skilled at convincing individuals to place their trust in him, engaged in a ‘Ponzi’ scheme to defraud investors, and ultimately cost them millions of dollars. We will continue investigating and prosecuting this type of crimes to the full extent of the law.”
The case was prosecuted by Assistant United States Attorneys Edward Veronda and Jeanette Collazo, and investigated by the FBI. Maldonado is facing a maximum term of imprisonment of 30 years, and a fine not to exceed $1,000,000.
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