‘LNJ Funds’ Pair Charged in $1M+ Investment Scam

NEW YORK, NY – Lourdes Rosales Banegas and Ramon Concepcion are facing federal charges today after allegedly fleecing over one hundred victims out of more than $1 million through a brazen investment fraud scheme dubbed “LNJ Funds.” The pair are accused of promising impossible returns while lining their own pockets, according to a joint announcement by the U.S. Attorney for the Southern District of New York and multiple federal agencies.

United States Attorney Jay Clayton minced no words, stating, “As alleged, Lourdes Rosales Banegas and Ramon Concepcion defrauded over one hundred victims through false promises about high and safe returns on their investments.” Clayton emphasized the defendants’ callousness, adding, “But, Banegas and Concepcion selfishly spent their victims’ money on themselves. Our office is committed to bringing those who prey on Main Street investors to justice.”

The indictment alleges that Banegas and Concepcion marketed LNJ Funds as a guaranteed path to riches, promising investors a 20% return every sixty days with “no risk of losing money.” They falsely claimed the funds were invested in federally-backed student loans, a deceptive tactic designed to lull victims into a false sense of security. Investors were told they could withdraw funds after a 60-90 day waiting period – a promise that was never kept.

But the reality, according to investigators, was far grimmer. Instead of investing the money, Banegas and Concepcion allegedly used the funds to finance a lavish lifestyle, splurging on airfare, hotels, retail purchases, and other personal expenses. Adding insult to injury, Banegas is also accused of funneling a portion of the stolen funds to bank accounts in Colombia, including one in her own name. This isn’t just about greed, it’s about deliberate theft and a calculated disregard for the financial well-being of those who trusted them.

“As alleged, the defendants fleeced over a hundred innocent victims out of millions of dollars through their sham claims of a ‘risk-free’ money-making opportunity,” stated Ricky J. Patel, Special Agent in Charge of Homeland Security Investigations. “Their alleged Ponzi scheme crumbled today, as did any façade of legitimacy behind their purported investment firm, LNJ Funds.” Patricia Tarasca, Special Agent in Charge of the FDIC-OIG, echoed this sentiment, noting the defendants “enriched themselves while doing so” and falsely assured victims they would eventually recoup their investments.

The U.S. Postal Inspection Service also weighed in, warning potential investors to thoroughly research any investment opportunity before handing over their money. “Before investing, individuals should research all claims and promises of high returns made by investment companies,” said Acting Inspector in Charge Edward Gallashaw. “Too often, victims are enticed by bold promises and overlook warning signs that something may be off.” Banegas and Concepcion were arrested today and will be presented before U.S. Magistrate Judge Robert W. Lehrburger. The investigation is ongoing.

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