LAWFUEL – The Law Newswire – R. Alexander Acosta, United S…

LAWFUEL – The Law Newswire – R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, announced that United States District Court Judge Adalberto Jordan today sentenced defendant Hector Orlansky, the former president of E.S. Bankest, to 20 years imprisonment for his crimes related to bank fraud and money-laundering at E.S. Bankest in Miami. The case involved a loss of $164-million to entities of the Espirito Santo Group, which includes Espirito Santo Bank in Miami, and Judge Jordan’s sentence included an order that Hector Orlansky make restitution of $164,597,310.11. Judge Jordan described the magnitude of the loss as “staggering,” and noted that this was the largest bank fraud in the history of the south Florida community.

Hector Orlansky and three co-defendants, who await sentencing, were convicted following a six-month jury trial in Miami last year. Hector Orlansky was convicted of 39 felony counts, including bank fraud, wire fraud, money-laundering, conspiracy and submitting false statements to the Federal Deposit Insurance Corporation. Evidence at trial showed that E.S. Bankest, a factoring company in the business of funding clients secured by clients’ accounts receivable, borrowed multi-millions of dollars of money from Espirito Santo Bank clients based on fraud, including fabricated accounts receivable; Espirito Santo Group eventually took the debt positions of the clients, and absorbed the loss. The indictment charged a conspiracy from approximately June, 1994, until August, 2003, when an examiner was appointed by the federal court to look into the affairs of the company, which collapsed.

United States Attorney Acosta stated, “today’s 20 year sentence is an important benchmark to our business community that honesty and integrity in commercial dealings must be protected, and that those who cheat face serious consequences.”

Nine people were criminally charged in connection with the fraud. Five pled guilty and were previously sentenced. Awaiting sentence are Eduardo Orlansky, brother of Hector Orlansky and former Chairman of the Board of Managers of E.S. Bankest; R. Peter Stanham, former corporate Secretary and Treasurer of E.S. Bankest; and Ariadna Puerto, former Vice-President of E.S. Bankest.

The case was prosecuted by Assistant United States Attorneys Matthew Menchel, Caroline Heck Miller and Ryan Stumphauzer. The case was investigated by the Federal Bureau of Investigation, whose diligence and thoroughness in investigating the complex case and analyzing and managing the voluminous evidence was praised by United States Attorney R. Alexander Acosta.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at 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 at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

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