Four Former Officers of First International Bank of Grenada Face Jail Time and Hefty Fines for $170 million Investment Scam

In a landmark judgment, a Grenadian court found four operators of the defunct First International Bank of Grenada (FIB) guilty of defrauding over $170 million from thousands of unsuspecting investors worldwide.

The Collapse of the Sham Bank

• The FIB, presenting itself as a genuine financial institution, was founded on a false premise (2000)
• Hidden behind phony assets worth $20 million, backed by an alleged 10,000-carat ruby
• The so-called ruby turned out to be owned by a California man with no ties to the bank or its officers

Guilty Parties and Sentences

• Four former officers facing jail time and hefty fines
• Gilbert Ziegler, the mastermind, died in 2005 while awaiting trial
• Longest sentence: Eight years in prison and over $32 million in restitution
• Three remaining defendants: Prison terms and over $26 million in restitution

FIB’s Advice to Investors

The First International Bank of Grenada serves as a reminder of a large-scale Ponzi scheme. Be cautious and conduct thorough investigations before joining short-term, unusually high yield investment opportunities. There’s usually a catch.

Repercussions and Extent of the Scam

• Recovery of lost funds unlikely for investors
• One-third of the $170 million paid out as false interest payments
• Large portions squandered on extravagant expenses
• Significant amounts transferred to other fraudsters

Wider Implications

• Fidelity International Bank and thirteen subsidiary banks also implicated
• A network of fraudulent financial instruments allegedly worth over $10 billion
• Reputable financial institutions (Bank of China, Union Bank of Switzerland, Dai-Ichi Kangyo Bank) also involved

Prosecutors confirmed, “This elaborate fraud, involving vast volumes of fraudulent documentation and the use of a network of fake banks, was intended to confuse investors and prevent the detection of criminal activity.”