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Mail Fraud Scandal Rocks Puerto Rico
Two individuals have been charged with mail fraud in a scheme that swindled millions from unsuspecting investors in Puerto Rico.
Oscar Ferrer and Jonathan A. Rivera-Padilla, the pair at the center of the scandal, allegedly used a Ponzi scheme to collect approximately $5.7 million from investors. The funds were paid to corporations operated by Ferrer in Puerto Rico and Florida, including Reco Financial, Inc., National Western HIA, Inc., and CGB Financial, Inc.
The indictment, unsealed yesterday, charges Ferrer and Rivera-Padilla with conspiracy to commit mail fraud, mail fraud, and monetary transactions in property derived from specified unlawful activity. Assistant U.S. Attorney Seth A. Erbe is prosecuting the case.
According to the indictment, Ferrer and Rivera-Padilla used their connections and referrals in the Cabo Rojo area to meet potential investors. In order to obtain purported investments, misrepresentations were made that the principal and interest on the investment would be guaranteed. Investors were then directed to make their payment to one of the corporations operated by Ferrer.
Once deposited, the funds were not invested. Instead, they were withdrawn by Ferrer or transferred to personal bank accounts belonging to Ferrer, Rivera-Padilla, or others. As a lulling tactic to avoid detection, some interest payments were made and false investment statements were created and mailed to the investors/victims.
The scheme, which lasted from 2011 to the present, netted approximately $4.1 million. If found guilty, Ferrer and Rivera-Padilla face a maximum penalty of twenty years in prison for mail fraud and conspiracy to commit mail fraud, and ten years in prison for monetary transactions in property derived from specified unlawful activity.
The United States Postal Inspection Service and Federal Bureau of Investigation are in charge of the investigation, which is ongoing. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
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Key Facts
- State: Puerto Rico
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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