Post by anenro on Jun 12, 2020 19:49:10 GMT 4
A Wayne man pleaded guilty Thursday to orchestrating a multi-million dollar bank fraud scheme, the U.S. Attorney's Office said.
Edward Espinal, 44, admitted to using his position as founder and CEO of Cash Flow Partners LLC to commit both bank and securities fraud from 2016 to 2019, U.S. Attorney Craig Carpenito said in a statement.
“His complex scam tricked numerous investors out of a substantial amount of money," Carpenito said.
From March 2016 through December 2019, Espinal obtained millions of dollars in bank loans through false representations. Cash Flow used online advertisements — featuring Espinal and a former telenovela actor — and even held seminars to help customers with lower incomes obtain loans, the statement said.
Sales employees for the company pushed customers to sign up for loan programs provided by Cash Flow and to sign contracts with the company. The purpose of the contracts was to allow employees to help customers get loans from banks, where customers would keep part of the loan and pay the rest back to the company, the statement said.
Cash Flow would then use false information and false documents to obtain loans for its customers, who would not have qualified otherwise and posed as the customers in communications with the banks, the statement said.
From July 2016 through September 2019, Espinal obtained more than $5 million in investments from victim investors through false and fraudulent pretenses, the statement said.
Espinal used a marketing campaign on Spanish language television channels, the “Cash Flow TV” YouTube page, and live presentations in Cash Flow’s offices and elsewhere to solicit investments from customers, the statement said.
Espinal gave “promissory notes” to investors that guaranteed monthly investment returns between 1.25 percent and 4 percent, the statement said. The promissory notes promised that Cash Flow would return investors’ principal either one year from the date of the promissory note or 60 days after investors demanded payment, according to the statement.
Espinal told investors that he would pool their funds with the funds of other investors in investments related to real estate, a gold mine in Ecuador and international construction projects, the statement said.
The investor funds were used by Espinal to pay returns to earlier investors, for personal expenses and future marketing campaigns, the statement said.
Two Cash Flow employees, Raymundo Torres and Jennie Frias, have previously pleaded guilty to their roles in the bank fraud conspiracy and are awaiting sentencing, according to the statement.
Espinal's sentencing is scheduled for Oct. 13, where he could face up to 30 years for conspiracy to commit bank fraud and up to 20 for securities fraud.
Edward Espinal, 44, admitted to using his position as founder and CEO of Cash Flow Partners LLC to commit both bank and securities fraud from 2016 to 2019, U.S. Attorney Craig Carpenito said in a statement.
“His complex scam tricked numerous investors out of a substantial amount of money," Carpenito said.
From March 2016 through December 2019, Espinal obtained millions of dollars in bank loans through false representations. Cash Flow used online advertisements — featuring Espinal and a former telenovela actor — and even held seminars to help customers with lower incomes obtain loans, the statement said.
Sales employees for the company pushed customers to sign up for loan programs provided by Cash Flow and to sign contracts with the company. The purpose of the contracts was to allow employees to help customers get loans from banks, where customers would keep part of the loan and pay the rest back to the company, the statement said.
Cash Flow would then use false information and false documents to obtain loans for its customers, who would not have qualified otherwise and posed as the customers in communications with the banks, the statement said.
From July 2016 through September 2019, Espinal obtained more than $5 million in investments from victim investors through false and fraudulent pretenses, the statement said.
Espinal used a marketing campaign on Spanish language television channels, the “Cash Flow TV” YouTube page, and live presentations in Cash Flow’s offices and elsewhere to solicit investments from customers, the statement said.
Espinal gave “promissory notes” to investors that guaranteed monthly investment returns between 1.25 percent and 4 percent, the statement said. The promissory notes promised that Cash Flow would return investors’ principal either one year from the date of the promissory note or 60 days after investors demanded payment, according to the statement.
Espinal told investors that he would pool their funds with the funds of other investors in investments related to real estate, a gold mine in Ecuador and international construction projects, the statement said.
The investor funds were used by Espinal to pay returns to earlier investors, for personal expenses and future marketing campaigns, the statement said.
Two Cash Flow employees, Raymundo Torres and Jennie Frias, have previously pleaded guilty to their roles in the bank fraud conspiracy and are awaiting sentencing, according to the statement.
Espinal's sentencing is scheduled for Oct. 13, where he could face up to 30 years for conspiracy to commit bank fraud and up to 20 for securities fraud.