06/24/2009

News / Miami Man Indicted in Connection with $2.5 Million Investment Ponzi Scheme

Jeffrey H. Sloman, Acting United States Attorney for the Southern District of Florida, Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and Linda B. Charity, Acting Commissioner, State of Florida, Office of Financial Regulation, announced that defendant Isaac Niego was indicted on charges of defrauding thirty three (33) investors in a $2.5 million Ponzi scheme, resulting in substantial losses to the investors. Specifically, Niego was charged with conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and with substantive counts of wire fraud, in violation of Title 18, United States Code, Section 1343. If convicted, he faces a maximum sentence of 20 years’ imprisonment on each count.

According to the Indictment, Niego, along with a coconspirator, solicited individuals to invest funds with Bull Trade, LLC, and Profitas Capital Investments, both located in Coral Gables, FL. To attract investors, Niego and his co-conspirator allegedly falsely represented to investors that their monies would be invested in the stock, commodities, futures and currencies markets, that their investments would be risk-free, that their returns would be guaranteed, and that they would earn returns of several hundred percent. In fact, however, Niego invested only a small fraction of the funds, diverting the majority of investor funds for his personal use. In addition, in classic Ponzi scheme fashion, Niego used later investors’ funds to pay back on the principal and returns owed to earlier investors.

Mr. Sloman commended the investigative efforts of the Federal Bureau of Investigation and the Office of Financial Regulation. The case is being prosecuted by Assistant U.S. Attorney Lois Foster Steers.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

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