Breaking News, Sep. 13, 2023
Deutsche Bank Can’t Undo $95M Verdict Over Ponzi Scheme@DeutscheBank was denied a new trial by a Florida federal judge after being hit with a $95 million verdict in April on allegations it ignored signs of fraud and allowed a group of clients to continue running a Ponzi scheme.
— lawsinusa (@lawsinusa) September 13, 2023
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Breaking News, Apr 26, 2023
Deutsche Bank Hit With $95M Jury Verdict For Ignoring Fraud
A Florida federal jury on Tuesday awarded $95 million in damages to liquidators representing four Cayman Island companies that accused @DeutscheBank of ignoring a Ponzi scheme
— lawsinusa (@lawsinusa) April 26, 2023
Deutsche Bank Enabled ‘Massive’ U.S. Ponzi Scheme, Lawsuit Says
JUL 23, 2021 | REPUBLISHED BY LIT: SEP 10, 2021
Pearson v. Deutsche Bank AG (1:21-cv-22437), District Court, S.D. Florida
Extract: “Indeed, Deutsche Bank profited by enabling and assisting this conduct because of its fee structure and the money it earned as a result of the fraudulent scheme…” (p.62).
Deutsche Bank AG is accused of turning a blind eye to a years-long Ponzi scheme that involved fraudulent investments in Florida, expanding the growing list of legal and compliance headaches for Chief Executive Officer Christian Sewing.
Liquidators of two now-bankrupt Cayman Islands investment funds sued the bank in New York and Florida, claiming it “enabled theft on a massive scale” that led to hundreds of millions of dollars in losses, court records show. Deutsche Bank maintained accounts for entities involved in the scheme despite repeated red flags and SEC sanctions against them, and it failed to enforce its own rules to prevent money laundering, the suits allege.
“As we have maintained, these claims lack merit and we will continue to vigorously defend ourselves,” a Deutsche Bank spokeswoman said by email.
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Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, September 9, 2021
Three Operators of Financial Services Firm Charged and Arrested in Alleged $155 Million Investment Fraud Scheme
A three-count criminal indictment was unsealed yesterday in federal court in the Eastern District of New York charging Roberto Gustavo Cortes Ripalda, 54, of Madrid, Spain; Fernando Haberer Bergson, 48, of Buenos Aires, Argentina; and Ernesto Heraclito Weisson Pazmino, 53, of Miami, Florida, with conspiring to defraud investors and financial institutions as part of an international fraud scheme stretching through the United States, South America, and Europe.
The defendants are each charged with conspiracy to commit wire fraud, conspiracy to commit bank fraud, and conspiracy to commit money laundering. Federal agents arrested Weisson in Miami yesterday. Cortes and Haberer were also arrested yesterday in Spain and Argentina, respectively.
According to the indictment, Cortes and Weisson founded Biscayne Capital, a financial services company, in 2005. Between approximately 2013 and 2018, Cortes, Haberer, and Weisson, together with others, orchestrated a scheme to defraud Biscayne Capital clients and financial institutions through a series of material misrepresentations and omissions about, among other things, how Biscayne Capital client funds would be used.
The defendants and their co-conspirators used the funds they fraudulently obtained from clients and financial institutions to pay other investors, cover Biscayne Capital expenses, and pay themselves millions of dollars.
The indictment further alleges the defendants and their co-conspirators falsely told some Biscayne Capital clients that the clients’ investments in certain private investment products (referred to in the indictment as “Proprietary Products”) would be used to finance the development of real estate projects, when in fact, the defendants and their co-conspirators used the clients’ investments to pay other Biscayne Capital clients.
The indictment also alleges the defendants and their co-conspirators invested certain clients’ money in Proprietary Products without those clients’ knowledge, and then provided those clients with fraudulent account statements that showed fake investments.
The defendants and others also conspired to fraudulently induce financial institutions to extend short-term credit to help further the scheme. Haberer then generated fake letters of authorization to repay the banks out of Biscayne Capital clients’ accounts without those clients’ authorization.
By September 2018, the alleged scheme collapsed, and Biscayne Capital went into liquidation, causing more than $155 million in losses to Biscayne Capital clients.
Weisson had an initial court appearance yesterday before U.S. Magistrate Judge Chris M. McAliley of the U.S. District Court for the Southern District of Florida. If convicted of all counts, each defendant faces a maximum penalty of 70 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Jacquelyn M. Kasulis of the Eastern District of New York; Acting Special Agent in Charge Darrell J. Waldon of the IRS-Criminal Investigation (IRS-CI) Washington Field Office; Special Agent in Charge Joleen D. Simpson of the IRS-CI Boston Field Office; and Special Agent in Charge Raymond Villanueva of the Homeland Security Investigations (HSI) Washington Field Office made the announcement.
The IRS-CI Global Illicit Financial Team and HSI are investigating the case.
Trial Attorneys Randall Warden and Shaunik R. Panse of the Justice Department’s Money Laundering and Asset Recovery Section (MLARS); Trial Attorney John (Fritz) Scanlon of the Justice Department’s Fraud Section; and Assistant U.S. Attorneys David Gopstein and Benjamin Weintraub of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
The Justice Department’s Office of International Affairs provided significant assistance in this case.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Topic(s):
Financial Fraud
Component(s):
Criminal Division
Criminal – Criminal Fraud Section
Press Release Number:
21-845
Updated September 9, 2021
Sofia Gonzalez
September 26, 2021 at 4:20 am
DeutscheBank tried to cover up their mistakes enabling the Ponzi criminals by covering the overdraft, that the Biscayne Individuals created, by willfully converting other people’s’ money to Deutschebank’s benefit. See case 20-cv-23864 in southern district of Florida .