16 December – LAWFUEL – The Law News Network – R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Michael S. Clemens, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, announced today that defendant, Carlos Libera, was indicted and charged with eleven (11) counts of wire fraud in violation of Title18, United States Code, Section 1343, and two (2) counts of forging and counterfeiting official seals of the United States, Title18, United States Code, Section 506.
Libera faces a maximum term of imprisonment of five (5) years as to the first six (6) wire fraud counts and a maximum penalty of up to twenty (20) years for the following five (5) wire fraud counts. He faces a maximum term of imprisonment of up to five (5) years as to the two (2) counts of forging official seals of the United States. Libera also faces a fine of $250,000 as to each of the thirteen (13) counts of the Indictment.
According to the Indictment, Libera held himself out to be a successful foreign currency trader. To further this illusion, he established three corporations, Asesoria Invertrust, CA, Forinex Investment Corporation and Invertrust Inc., through which he purported to conduct his foreign currency trading business. Libera solicited investors by representing that he had exceptional investment expertise and had, in the past, made extraordinary profits for customers by trading in the foreign currency markets. Moreover, Libera promised the investors that they would earn a profit on their investment. In order to induce individuals to invest money with his companies and him, Libera made and caused his employees, associates and others to make materially false statements to investors, including false statements as to his past profitability in trading foreign currency. Libera, for example, told potential investors that Asesoria Invertrust had an accumulated rate of return of 93.17% for 1998 through 2000, when, in fact, Asesoria was not incorporated until March 1999, and had suffered losses for 1999 and 2000. The monthly investor statements which Libera caused to be prepared virtually always reflected a profit, when in fact, Libera was suffering trading losses.
As alleged in the Indictment, when investors became suspicious and began asking for the return of their capital, Libera falsely advised them, directly and through his employees and associates, that he was unable to return their investments because the United States Government had allegedly “frozen” his funds pursuant to the PATRIOT Act. In support of this story, Libera fabricated documents bearing the seal of the Federal Deposit Insurance Corporation (“FDIC”) and the Financial Crimes Enforcement Network, Department of the Treasury.
Between approximately April 1999 and June 2, 2003, Libera obtained approximately $8,136,000 from approximately 170 investors. Of that, Libera used only approximately $4,641,000 to trade foreign currency. As alleged in the Indictment, Libera misappropriated at least $2,000,000 of investor money to pay for personal expenses, including, among other things: a 2002 Porsche Turbo Tip; a 2002 Mercedes Benz ML 320; a 2002 Mercedes Benz CLK 430; a 2003 Mercedes Benz C32; his American Express bills; a Harley Davidson motorcycle; his condominium; condominium association fees; insurance fees; and private school tuition.
Mr. Acosta commended the investigative efforts of the Federal Bureau of investigation. This case is being prosecuted by Assistant United States Attorney Bertha R. Mitrani.
A copy of the this press release may found on the website of the United States Attorney’s Office for the Southern District of Florida www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.