A Miami man will spend the next three decades in Federal prison on a wire-fraud conviction stemming from his alleged involvement in a scheme to defraud a Puerto Rican bank that eventually became insolvent as a result.
The 56-year-old man was the former chairman and CEO of a now-defunct pharmaceutical company from 2005 through 2007. Prosecutors say within months of his ascent to the position he began entering into loan agreements with the Puerto Rican bank that caused the bank to advance the firm cash based upon its sales to customers.
However, investigators say the defendant orchestrated a scheme whereby employees created significant quantities of fake invoices reflecting tens of millions of dollars in drug sales they say were never made. He allegedly also represented to the bank that his firm would soon receive repayments from fictitious loans it made with borrowers around the world, causing the bank to advance the firm more money. The defendant also allegedly grossly misrepresented to the bank the assets held by his company that could serve as collateral on further loans, which led to the bank making more loans.
Ultimately the defendant arranged for $142 million in loans from the Puerto Rican bank. Prosecutors say he diverted a portion of those funds for his personal use, including for the purchase of several “big ticket” items like luxury homes, private jets, expensive cars, and fine jewelry. Of the funds the bank lent to the pharmaceutical firm, about $100 million of it was not recovered, leading to the bank’s insolvency and eventual collapse.
The defendant was convicted in February of eight counts of wire fraud affecting a financial institution. Last week he was sentenced to 30 years in Federal prison, 5 years of supervised release, and ordered to pay $103,490,005 in restitution.
The Law Offices of Bjorn Brunvand have been representing people charged with capital murder, felony drug charges, drunk driving, government fraud, and white-collar crimes for over a quarter century. Contact our office today to discuss your Tampa Bay-area state or federal charges.