The U.S. Department of Justice announced that Roberto Gustavo Cortes Ripalda, co-founder, co-owner and former CEO of Biscayne Capital, was sentenced in Brooklyn, New York to 10 years in prison for conspiracy to commit wire fraud. The court also ordered USD 3.4 million in forfeiture and USD 103 million in restitution to more than 110 victims following Cortes’ guilty plea in September 2023. Court filings describe a Ponzi-style scheme in which Cortes and co-defendant Ernesto Heraclito Weisson Pazmino raised investor funds purportedly to finance South Bay, their real estate development business, but used most of the money to pay interest and principal owed to other investors after South Bay encountered financial trouble. The scheme allegedly relied on false and misleading investment documents, misrepresentations about the purpose, risk, return and security of investments, and fake account statements; DOJ said investor losses exceeded USD 155 million by the time Biscayne Capital collapsed and went into liquidation. IRS Criminal Investigation led the investigation, and the Justice Department’s Office of International Affairs assisted with Cortes’ arrest and extradition from Spain and evidence gathering with support from multiple jurisdictions.

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