Lambos & Lies: Ohio Man Charged in $9.6M Investor Scam

CLEVELAND – Oscar Villarreal, 27, formerly of Gates Mills, Ohio, is facing a 19-count federal indictment alleging he masterminded a $9.6 million investment scheme that preyed on investors and funded a life of conspicuous consumption. Law enforcement officials say Villarreal used deceit to line his pockets while leaving a trail of financial ruin in his wake.

The indictment details how Villarreal, operating through a network of partnerships and limited liability corporations including WW Capital III, L.P., WW Capital III LLC (also known as WWCIII), WW Capital Partners LLC, (also known as Fund II) and Black Mountain Enterprises, LLC, lured approximately 46 investors in Ohio, Florida, New Jersey and New York with promises of high returns in Mexican petroleum, steel, metals and real estate. Instead, the funds were allegedly diverted to fuel a lavish lifestyle, including the purchase of a Lamborghini and a Steinway piano.

“This defendant used lies and deception to rip off investors and lead an extravagant lifestyle,” stated Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. The scheme spanned from 2008 to 2013, with early solicitations for “Fund II” falsely claiming investment in the Mexican metal industry. Villarreal even distributed approximately $715,000 to Fund II investors in 2009, falsely representing it as profits, when the money actually originated from a separate consulting fee and his personal line of credit.

The indictment alleges Villarreal then misrepresented Fund II’s performance to potential WWCIII investors, claiming a 45 percent rate of return when no returns had been generated. Rather than investing funds as promised, Villarreal allegedly used investor money for speculative trades, business expenses related to the scheme, and luxury purchases. He repeatedly told investors their funds would be pooled for investments in Mexican industries, leveraging supposed personal connections, but this was a fabrication, according to prosecutors.

Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland office, revealed that Villarreal is believed to have fled the Cleveland area. “Mr. Villarreal utilized his charisma and bogus information to defraud hard working individuals,” Anthony said. “The FBI is asking the public to provide any information they have regarding his current whereabouts so that he may answer for his numerous years as a fraudster.” Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, added, “When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime.”

Villarreal is charged with 10 counts of wire fraud, seven counts of money laundering, one count of securities fraud and one count of investment adviser fraud. The investigation remains ongoing, and authorities urge anyone with information regarding Villarreal’s location to contact the FBI. This case serves as a stark reminder of the devastating consequences of financial fraud and the importance of due diligence when making investment decisions.