Financial Crime World

Four Executives of “First International Bank of Grenada” Face Jail Time and Millions in Fines for $170 Million Investor Fraud

Conviction of Four Top Executives

  • Four top executives of the defunct “First International Bank of Grenada” were convicted this week for defrauding over $170 million from thousands of investors around the world.
  • The bank’s deception began with false claims and counterfeit documents, promising eye-popping returns of up to 300%.

Bank’s Deception Uncovered

  • The bank’s assets were falsely claimed to be supported by a 10,000-carat ruby appraised at $20 million.
  • The ruby, however, belonged to a California man, who was unaware of the bank and its executives.

Sentencing and Fines

  • One executive was sentenced to eight years in prison and ordered to pay over $32 million in restitution.
  • The remaining three executives must pay over $26 million in restitution.

Founder’s Demise

  • The deceitful founder, Gilbert Ziegler, a former mortgage banker, passed away in 2005 while awaiting trial.

Hopes of Recovering Lost Funds Slim

  • Approximately one-third of the $170 million was paid back to investors as falsified interest payments.
  • A significant portion was squandered on extravagant expenses.
  • A significant amount was lost as the masterminds behind the scam were themselves fleeced by other fraudsters.

Complex Scheme Unraveled

  • The investigation into this elaborate hoax took eight long years for authorities to untangle.
  • The trial lasted an additional three years.

Extent of the Scheme

  • The scam extended beyond the First International Bank of Grenada, encompassing Fidelity International Bank and 13 subsidiary banks.

Fake Financial Instruments

  • The banks’ assets were riddled with fraudulent financial instruments.
  • These instruments were fabricated to appear legitimate from well-known financial institutions.

Prosecutor’s Comments

  • According to prosecutors, the fraud involved substantial volumes of falsified documents and a complex web of fake banks.

Caution to Investors

  • The First International Bank of Grenada is a prime example of a massive Ponzi scheme.
  • Investors are urged to always practice caution and perform thorough due diligence when considering high-yield investment opportunities.

Recovering Stolen Funds

  • The chances of recovering funds from the perpetrators are minuscule.
  • One executive was living off social security, and another was working at a grocery store during their time awaiting sentencing.