Financier Osvaldo Villalobos was convicted of fraud and illegal financial intermediation yesterday afternoon and escorted out of court in handcuffs.
He and his fugitive brother Luis Enrique Villalobos were accused of fraud, illegal financial intermediation and money laundering for their involvement in an investment scheme known as “The Brothers.”
Osvaldo was acquitted of the money laundering charges because judges determined that the prosecution did not prove he was aware The Brothers received illicit funds from Canadian drug traffickers.
Osvaldo faces an 18-year prison sentence, which defense attorneys said they will appeal. He was also sentenced to eight months preventive prison while his case is being appealed; defense attorneys may begin the appeals process after he is read his sentence July 8.
The whereabouts of his brother Luis Enrique, who is wanted by the International Police (INTERPOL), are unknown, which is why the accusations against him were not addressed in this trial.
The verdict ordered that more than 100 investors be awarded millions of dollars in civil complaints attached to the criminal charges. However, judge Jeaneth Villareal said the $7 million in accounts that authorities froze in 2002 will remain in the hands of authorities for now.
What will happen with most of the hundreds of millions of dollars that 6,300 investors had invested with The Brothers is still unknown.
The Brothers ran an unregulated personal loan business for what some believe to be as long as 20 years that paid mostly foreign and elderly investors up to 3% monthly interest. |
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