Financial Crime World

Nicaragua: U.S. Citizen Extradited for Alleged Role in $137 Million Investment Fraud

MANAGUA, Nicaragua - A U.S. citizen, Lawrence Hartman, was extradited from Nicaragua on Wednesday, May 25, to face fraud and money laundering charges in the United States.

Hartman’s Arrest

Interior Minister Ana Morales confirmed Hartman’s deportation, stating that the 47-year-old lawyer was sent to Florida to appear in court on Thursday, May 26. Hartman was arrested in Nicaragua on April 25 after attempting to obtain a Nicaraguan passport using a counterfeit birth certificate.

Charges Against Hartman

According to U.S. authorities, Hartman, originally from Tampa, Florida, is one of seven individuals charged in the city for running a sophisticated investment fraud scheme that defrauded investors out of a minimum of $137 million. Hartman played a significant role in creating the scheme’s structure and facilitated the dissemination of worthless stock certificates to defrauded investors.

The Fraud Scheme

  • The group assumed the identities of over 50 corporations
  • They sold bogus stocks in these companies to investors in Britain, and elsewhere
  • U.S. authorities allege that the group raised millions from unsuspecting investors and siphoned off their funds through a network of shell companies
  • The fraud caused “significant harm” to investors and eroded trust in the financial industry

Previous Convictions

Three individuals convicted in the case earlier this year are due to be sentenced in July. Two others, charged separately, were convicted and sentenced to prison in 2021.

U.S. Securities and Exchange Commission’s (SEC) Statement

According to the SEC, Lawrence Hartman, through his fraudulent scheme, raised millions from unsuspecting investors and siphoned off their funds through a network of shell companies.

Nicaraguan Authorities’ Actions

Nicaraguan authorities acted swiftly to deport Hartman, citing the seriousness of the allegations, in accordance with a provisional arrest warrant issued by the United States. This deportation forms part of a cooperative effort between the two countries to combat transnational financial crimes.