Roberto Gustavo Cortes Ripalda, the co-founder and former CEO of Biscayne Capital, has been sentenced to 10 years in prison by United States District Judge Carol Bagley Amon. The international investment advisory firm's former executive was charged with conspiracy to commit wire fraud, a charge to which he pleaded guilty in September 2023. In addition to the prison term, Cortes has been ordered to pay $3.4 million in forfeiture and $103 million in restitution to over 110 victims.
John J. Durham, United States Attorney for the Eastern District of New York, along with key figures from the Justice Department and the IRS, announced the sentence. United States Attorney Durham stated, “Today’s sentence reflects the seriousness of Roberto Cortes’s criminal conduct in orchestrating a years-long scheme with his co-conspirators to prop up a failing business while defrauding Biscayne Capital investors and clients around the globe.” He added that the sentence demonstrates a commitment to holding accountable those investment professionals who exploit their clients' trust for personal gain.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, commented on the severity of the deception, saying, “For more than five years, Roberto Cortes and his co-conspirators lied to Biscayne Capital investors — including their friends and family members — about how they were using millions of dollars of their investments.” Galeotti highlighted that the scheme resulted in more than $100 million in losses to investors.
The IRS-CI Executive Special Agent in Charge, Kareem A. Carter, also emphasized that despite the complexity of the investigation, the IRS Criminal Investigation Special Agents would use their skills and authorities to hold individuals like Cortes accountable, stating, “This was a brazen scheme of staggering proportions. Mr. Cortes and his co-conspirators prioritized their own greed, stealing $155 million from investors.”
Cortes founded South Bay with co-defendant Ernesto Heraclito Weisson Pazmino, originally as a real estate business. They later established Biscayne Capital in 2005 to institutionalize financing. However, following financial difficulties, investors' funds were used to pay off earlier debts through a range of private structured investment products. This led to significant financial losses for the firm's clients.
Cortes also directed the fabrication of account statements, misleading clients about their funds. Efforts to sustain the scheme included obtaining short-term credit through misrepresentations. While Weisson pleaded guilty in April 2022 and awaits sentencing, a third co-defendant, Fernando Haberer, remains outside U.S. custody.
Assistant United States Attorneys Benjamin Weintraub and Drew Rolle, along with Trial Attorneys Randall Warden and Morgan Cohen, are prosecuting the case. The Justice Department's Office of International Affairs played a vital role in securing Cortes’s arrest and extradition from Spain.
###