Louis Lluberes, Conspiracy to Commit Bank Fraud, New York 2023

Former CEO of a major staffing company, Louis Lluberes, has pleaded guilty to orchestrating a massive bank fraud scheme that bilked investors out of $75 million. His brother, Moises Lluberes, also plead guilty to the crime.

As part of the scheme, the Lluberes brothers created over 2,000 fake invoices to inflate their company’s revenues, allowing them to borrow hundreds of millions of dollars from a U.S. bank. The fake invoices were used to disguise the loan proceeds and mischaracterize the funds as client collection payments.

The scheme, which began in 2017, allowed Company-1 to sell at a grossly inflated price to a group of investors. The brothers’ actions put the livelihoods of hundreds of employees at risk and caused $75 million in losses.

An investigation by the FBI and prosecutors from the Southern District of New York uncovered the scheme. Damian Williams, the U.S. Attorney for the Southern District of New York, praised the work of the FBI and his office in bringing the case to light.

‘For many years, the defendants perpetrated a massive accounting fraud scheme in order to deceive their lenders and investors. In addition to causing more than $70 million in losses to victims, the defendants’ fraud jeopardized the livelihoods of hundreds of their employees,’ Williams said.

Louis Lluberes, the former CEO of Company-1, founded the company in 1995. His brother, Moises Lluberes, served as the company’s Chief Financial Officer. They used their positions to create and conceal the fake invoices, which were used to deceive the bank and investors.

The brothers’ scheme was uncovered after an investigation by the FBI and prosecutors from the Southern District of New York. Their actions have put them in line for tough consequences, including the seizure of their assets. The case serves as a reminder of the importance of accountability in business and the devastating consequences of white-collar crime.

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