Title: Puerto Rico Businessman Carlos Maldonado Sentenced for Running Ponzi Scheme, Ordered to Pay Restitution

Maldonado Sentenced to 135 Months in Federal Prison

In a packed courtroom in San Juan, Puerto Rico, United States District Judge John A. Woodcock sentenced local businessman Carlos Maldonado to 11 years and three months (135 months) in federal prison for securities fraud and bank fraud related to a Ponzi scheme.

Businesses Involved in the Scheme

Maldonado, 53, owned several businesses involved in the scheme, including Business Planning Resources International Corporation (BPRIC), Glorimar Fashions and Tailoring, LLC, Global Business Insurance Agency Inc., and was affiliated with Pet Card Systems, Inc., and Datavos Corporation.

Sentencing and Restitution

Maldonado was ordered to serve five years of supervised release upon completion of his prison term and pay $1,986,734.26 in restitution to 46 victims.

Arrest and Trial

Maldonado was arrested in 2016 on 16 counts of securities fraud and bank fraud. A jury trial in December 2019 found him guilty on all charges.

Allegations of Fraud

Prosecutors alleged that between 2007 and 2012, Carlos Maldonado and his associates amassed over $5 million from more than 100 individuals and businesses in Puerto Rico and the Continental US under false pretenses.

False Business Representation

Maldonado materially misrepresented various aspects of his businesses to the victims. He falsely claimed that the companies were involved in legitimate business functions when they were not.

Misappropriation of Funds

The fraudulently obtained funds were used to invest in stocks and commodities, such as Forex Capital markets, LLC, and personal trading accounts, as well as for the defendant’s family expenses, retail purchases, travel expenses, rent, entertainment, and personal auto loan payments.

Warnings from Law Enforcement

In response to the sentencing, United States Attorney W. Stephen Muldrow for the District of Puerto Rico warned against investment fraud and encouraged reporting suspicions of fraudulent schemes. FBI SAC Joseph González echoed these sentiments and urged victims to contact law enforcement.

Prosecution and Investigation

The case was prosecuted by Assistant United States Attorneys Edward Veronda and Jeanette Collazo and investigated by the FBI.