Seattle Con Man Nino De Guzman Gets 10 Years for $30M Scam

SEATTLE – Jose L. Nino De Guzman, Jr., a 30-year-old Seattle resident, will spend the next decade in federal prison after being sentenced today for orchestrating a brazen $30 million Ponzi scheme. De Guzman, who ran NDG Investment Group, LLC, was convicted of wire fraud and money laundering in U.S. District Court. The scheme, operating from 2006 until its collapse in 2009, preyed on over 200 investors lured by the promise of lucrative real estate opportunities in Peru – promises that were almost entirely false.

The Washington State Department of Financial Institutions issued a cease and desist order in 2010, but the damage was already done. According to court records, De Guzman systematically misled investors, claiming their funds would be used for specific Peruvian real estate projects secured by actual property. He boasted a proven track record and guaranteed high rates of return. The reality? Neither De Guzman nor NDG Investment Group had ever successfully completed a real estate project in Peru. Of the twenty projects he pitched, only a handful of properties were ever purchased, and none generated a profit.

U.S. District Judge Robert S. Lasnik didn’t mince words during sentencing. He excoriated De Guzman for “obscene expenditures of funds on hedonistic things for pride, hubris and ego,” calling the level of misconduct “beyond anything this court has seen before.” Lasnik bluntly labeled De Guzman a “proven con man and a danger to the community.” The judge’s assessment reflects the sheer scale of the deception and the callous disregard for the victims who lost their life savings.

“This defendant committed a brazen, Ponzi-scheme spanning nearly three years and two continents and involving tens of millions of dollars, and more than 180 victims,” stated U.S. Attorney Jenny A. Durkan. “Month after month, day after day, Nino de Guzman lied to his friends and family and other investors, separating them from their hard-earned money, simply so he could live a lavish lifestyle. And when his web of lies unraveled, he desperately tried to knit together other stories to avoid accountability. The work of state authorities and the FBI put an end to his fraud.”

De Guzman’s background hardly suggested a financial whiz. He dropped out of the University of Washington and, prior to founding NDG Investment Group, held positions as a teller and personal banker at U.S. Bank. Yet, he falsely presented himself to investors as a seasoned business and commercial lending officer specializing in real estate. The scheme was fueled by a constant stream of fabricated “updates” showing fictitious construction sites, while investor funds were diverted to fund a life of opulent excess.

The prosecution detailed a spending spree that included a $365,000 diamond ring, a $600,000 yacht, a $250,000 luxury suite for Seahawks games, and a $200,000 Bentley automobile. As with any classic Ponzi scheme, De Guzman used money from new investors to pay off earlier ones, creating the illusion of success and attracting further investment. The ten-year sentence, while significant, offers little solace to the hundreds of victims left reeling from this calculated betrayal.