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U.S. Department of Justice Rosa Emilia Rodríguez-Vélez Torre Chardon Suite 1201 (787) 766-5656 FOR IMMEDIATE RELEASE Contacts: U.S. Attorney’s Office TWO BROTHERS, ONE OF THEM AN ATTORNEY, INDICTED FOR SECURITIES, WIRE AND BANK FRAUD, MONEY LAUNDERING CONSPIRACY AND CRIMINAL FORFEITURE More Than 230 Victims and 22 Million Dollars in Criminal Forfeiture
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San Juan, Puerto Rico- On September 25, 2008, a Grand Jury returned a five (5) count indictment charging two brothers, Dilean and Jeffrey Oscar Reyes-Rivera. Jeffrey Oscar has been licensed attorney in Puerto Rico since July, 2001. The defendants were incorporators and promoters of the Global Reach trading (“GRT”), a for profit investment interest organization. The brothers were charged with three counts of conspiracy to commit securities fraud, wire fraud, and money laundering, as well as one count of bank fraud. The indictment also contains criminal forfeiture allegation, announced today U.S. Attorney Rosa Emilia Rodríguez-Vélez. The indictment describes a large-scale investment fraud scheme that was perpetrated by the defendants between 2001 and 2007. The defendants and their promoters offered investment interests to the general public in Puerto Rico and elsewhere, claiming that the investments were short-term, risk free, and high yielding. In fact, the defendants operated a pyramid-type scheme where monies obtained from later investors were used to pay returns to earlier investors. Some of the monies were also used to purchase perquisites for the defendants and their families, including luxury vehicles, houses, furniture, jewelry, business interests, and to pay for their travel. Defendants Dilean and Jeffrey Oscar Reyes-Rivera held themselves out to potential investors as financial consultants, although they operated without the required licenses from the Office of the Commissioner of Financial Institutions-Commonwealth of Puerto Rico (“OCIF”) or the United States Securities Exchange Commission (“SEC”). The scheme resulted in actual losses to more than two hundred thirty (230) investors in amounts exceeding twenty two million dollars ($22,000,000). The maximum penalties on the charges contained in the indictment fluctuate between five to 20 years in prison, and fines of up to $5,000,000, or twice the pecuniary gain to the defendants, or twice the pecuniary loss to the victims, whichever is greater. “This case demonstrates the unwavering commitment of the U.S. Attorney’s Office for the District of Puerto Rico to vigorously investigate and prosecute cases of investor and consumer fraud. These cases involve mechanisms designed to fraudulently deprive people of their hard earned money, on some occasions of their life’s savings. These cases also serve as a wake-up call to the public to be more vigilant concerning their financial investments,” said United States Attorney Rosa Emilia Rodríguez-Vélez. “I urge and warn the public to be careful in making investments when they are offered a high yield rate of return on their investment. Usually, these high rate of returns are just like this case, an investment or pyramid scheme,” said Luis Fraticelli, Special Agent in Charge of the FBI- San Juan Field Office. “The truth of the matter is, if it looks too good to be true, it probably isn’t true.” The case was investigated by FBI and the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico (OCIF). The case is being prosecuted by Assistant U.S. Attorney Desirée Laborde Sanfiorenzo. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law. |