Leah B. Foley United States Attorney for the District of Massachusetts | Department of Justice
A Florida man, Jose Bello, was arrested on April 10 for allegedly running a multi-state Ponzi scheme that defrauded investors who believed they were funding short-term, high-return loans for real estate transactions or storm damage repair.
Federal prosecutors said Bello, age 38, faces four counts of wire fraud. He appeared in the Southern District of Florida and is scheduled to be arraigned later in federal court in Boston.
According to the charging documents, Bello told potential investors he worked with a group involved in short-term financing opportunities described as “private lending,” “gator lending,” or “hard-money lending.” Authorities allege he recruited investors through friends, family members, Facebook and Discord. The documents state that Bello provided false descriptions of investment opportunities and claimed the loans would fund repairs after storm damage. Instead of investing the funds as promised, prosecutors say Bello used investor money to pay purported returns to earlier investors and also gambled with their funds. When questioned by investors about missed interest payments or returned principal, it is alleged that Bello made false statements and excuses. Prosecutors estimate at least $5.7 million was obtained from victims while causing losses totaling at least $1.8 million.
If convicted on wire fraud charges, Bello could face up to 20 years in prison per count along with three years of supervised release and a fine up to $250,000 or twice the gross gain or loss from the offense—whichever is greater. Sentencing will be determined by a federal district court judge according to U.S. Sentencing Guidelines and applicable statutes.
The announcement was made by United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division. Assistant U.S. Attorney David M. Holcomb will prosecute the case.
Prosecutors remind that all details contained within charging documents are allegations only; defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
