Pedro L. González-Seijo D/B/A “PGS Insurance, Inc.” Charged With Securities And Bank Fraud
Forfeiture allegation of $583,161.25 dollars and two properties
SAN JUAN, P.R. – Today, defendant, Pedro L. González-Seijo, President and owner of PGS Insurance, Inc., was arrested and charged in an eleven-count indictment alleging securities fraud and bank fraud, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
From on or about the year 2012, Pedro L. González-Seijo d/b/a “PGS Insurance, Inc.”, personally and through others known and unknown to the Grand Jury, diverted money from his clients through the following manners and means: the defendant would accept checks from his clients that were meant to be deposited into the clients’ variable annuity account. Instead of depositing these checks into the clients’ variable annuity account, and without authorization from the clients, he deposited the money directly into his Banco Popular bank account, for his own personal gain and use. González-Seijo, without authorization from the clients, would withdraw money from his clients’ funds, and then deposit the withdrawal, minus any required withdrawal fees, into his Banco Popular bank account for his own personal gain and use.
It is also alleged that the defendant diverted money by getting authorization from his clients to withdraw money from his clients’ funds, supposedly to invest in a different product. González-Seijo would deposit the money into his personal account for his own personal gain and use. As a result of the scheme, Pedro L. González-Seijo d/b/a “PGS Insurance, Inc.” and others known and unknown to the Grand Jury, diverted money from his clients in the total amount of $210,203.20 from variable annuities, $372,958.05 from fixed annuities, for a total of $583,161.25, resulting in losses to investors either through the inability to acquire more capital through securities growth, or through the fees and penalties associated with early withdrawals.
In or about March 2018, Banco Popular closed the bank accounts that the defendant used as a result of the unusual activity detected in the bank account. In total, the amount of money diverted or withdrawn from his clients’ insurance accounts and variable annuities accounts was $583,161.25.
“The defendant’s alleged conduct undermines the confidence investors place in the financial markets,” said U.S. 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 scheme to defraud investors, and ultimately cost them thousands of dollars. We will continue investigating and prosecuting this type of financial fraud to the full extent of the law.”
Douglas Leff, Special Agent in Charge of the FBI in San Juan, PR and the Caribbean stated: “FBI San Juan's White Collar Crime Squad continues to investigate the extensive fraud involved in this case. We believe that there are additional victims and witnesses, and the faster we identify them, the more quickly we and the United States Attorney's Office can seek justice for those who have been hurt. Anyone with information can reach us at 787-754-6000 and tips.fbi.gov.”
Investors who believe they are victims of Pedro L. González-Seijo and signed investment contracts with González-Seijo 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 González-Seijo 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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