Roberto Gustavo Cortes Ripalda, the former CEO and co-founder of Biscayne Capital, has been sentenced to 10 years in prison following his guilty plea to charges of conspiracy to commit wire fraud. This sentence, delivered in Brooklyn, New York, also includes an obligation for Cortes to pay $3.4 million in forfeiture and $103 million in restitution, addressing the losses of over 110 victims.
Matthew R. Galeotti, the Head of the Justice Department’s Criminal Division, stated, "For more than five years, Roberto Cortes and his co-conspirators ran Biscayne Capital as a Ponzi scheme, lying to investors — including the defendant’s own friends and family members — and ultimately causing more than $155 million in investor losses.”
The U.S. Attorney for the Eastern District of New York, John J. Durham, shared the sentiment, remarking that the sentence highlights the gravity of Cortes's crimes. "Using illegal Ponzi payments to their victims, Cortes and his co-conspirators were able to disguise and perpetuate this scheme for years until Biscayne Capital finally collapsed under the defendants’ lies," Durham said.
IRS-CI Executive Special Agent in Charge Kareem A. Carter emphasized the significant scale of the fraud. "This was a brazen scheme of staggering proportions. Mr. Cortes and his co-conspirators prioritized their own greed, stealing $155 million from investors," Carter stated.
Court documents reveal that Cortes co-founded Biscayne Capital in 2005 with Ernesto Heraclito Weisson Pazmino to finance their real estate venture, South Bay. However, financial difficulties in 2007 led them to use investor funds not for project developments but for paying existing debts, establishing a Ponzi scheme. The fraudulent activities included false documents, deceptive information concerning investments, and fake account statements to mask the scam. Ultimately, the collapse of the scheme resulted in over $155 million in losses for Biscayne Capital clients.
The investigation, spearheaded by IRS-CI, saw significant contributions from the Justice Department’s Criminal Division, along with support from international partners for the arrest, extradition, and evidence gathering essential to the case. "Today’s sentencing sends a clear message that we remain vigilant and will vigorously pursue those who attempt to enrich themselves through fraudulent means," Carter added.