Individual Operating “Ponzi” Scheme Charged With Securities And Bank Fraud
Forfeiture allegation of $2,900,000 dollars
SAN JUAN, P.R. – Today, 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, was arrested and charged in a sixteen-count indictment alleging securities fraud and bank fraud, announced today Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
From on or about the year 2007 through the year 2012, Carlos Maldonado along with other individuals known and unknown to the Grand Jury 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.
While soliciting investors, defendant Maldonado, in person, through the telephone, internet and through other promoters, would make or cause 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 alleged conduct undermines the confidence investors place in the financial markets,” said US Attorney Rosa Emilia Rodríguez-Vélez. “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.”
Investors who believe they are victims of Carlos Maldonado and signed investment contracts with Maldonado are encouraged to contact the US Attorney’s Office to be informed of the proceedings and their rights to restitution.
The case is being prosecuted by Assistant United States Attorney Edward Veronda. The case was investigated by the FBI. Defendant Maldonado is facing a maximum term of imprisonment of 30 years, and a fine not to exceed $1,000,000.
An indictment is only an accusation and not evidence of guilt. All defendants are presumed innocent until proven guilty.
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