Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
Federal authorities have charged Lourdes Rosales Banegas and Ramon Concepcion with operating an investment fraud scheme that allegedly took more than one million dollars from over one hundred victims. The charges were announced by Jay Clayton, U.S. Attorney for the Southern District of New York, along with officials from Homeland Security Investigations (HSI), the Federal Deposit Insurance Corporation’s Office of the Inspector General (FDIC-OIG), and the U.S. Postal Inspection Service (USPIS). Both defendants were arrested and are scheduled to appear before U.S. Magistrate Judge Robert W. Lehrburger.
“As alleged, Lourdes Rosales Banegas and Ramon Concepcion defrauded over one hundred victims through false promises about high and safe returns on their investments,” said U.S. Attorney Jay Clayton. “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.”
HSI Special Agent in Charge Ricky J. Patel commented: “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. Their alleged Ponzi scheme crumbled today, as did any façade of legitimacy behind their purported investment firm, LNJ Funds. Every day, HSI New York stands alongside our law enforcement partners in utilizing every tool at our disposal to ensure New Yorkers as well as those around the world, and their livelihoods, are protected from criminal opportunists’ intent on filling their pockets by any means necessary."
FDIC-OIG Special Agent in Charge Patricia Tarasca added: “The defendants allegedly made false promises as part of an investment scam involving more than 100 victims and enriched themselves while doing so. Despite assurances that their victims could eventually recover their invested money, this did not prove to be the case. We are pleased to join our law enforcement partners in bringing the perpetrators of such deceit to justice.”
USPIS Acting Inspector in Charge Edward Gallashaw stated: “The U.S. Postal Inspection Service will continue to investigate investment schemes such as this and hold those who seek to defraud the American public accountable. Before investing, individuals should research all claims and promises of high returns made by investment companies. Too often, victims are enticed by bold promises and overlook warning signs that something may be off.”
According to allegations in the indictment, Banegas and Concepcion promoted what they called “LNJ Funds,” claiming it offered guaranteed 20% returns every sixty days with no risk because funds would be invested in student loans backed by the federal government. They also told investors they could withdraw funds after a waiting period.
However, investigators allege that instead of investing client money as promised, Banegas and Concepcion used investor funds for personal expenses including airfare, hotels, retail purchases, and sent some proceeds to bank accounts in Colombia controlled by Banegas or under her name. Authorities further state that payments made from some investors were used to pay others in order to create an appearance of legitimacy.
When investors tried to withdraw funds after waiting periods had passed, authorities allege there was not enough money left; instead of returning investments as promised, Banegas and Concepcion reportedly ignored or lied to clients seeking withdrawals.
Both defendants face one count each of conspiracy to commit wire fraud with a maximum sentence of 20 years if convicted; Banegas faces three additional counts related to monetary transactions using property derived from unlawful activity—each carrying up to 10 years imprisonment.
The prosecution is being led by Assistant U.S. Attorney Christopher Brumwell with support from Paralegal Specialist Angelica Cotto at the Office’s Illicit Finance and Money Laundering Unit.
The charges detailed above remain allegations until proven otherwise; all facts described should be treated accordingly.
