A&O Update: Provident Capital Indemnity and its Owners Indicted for Fraud
Last week the Costa Rican bond company Provident Capital Indemnity and its owners were indicted in federal court in Virginia for mail and wire fraud. Here is the indictment.
Provident Capital gained attention for defaulting on the bonds that were supposed to guarantee the A&O Life investments.
Here is a Bloomberg article on the indictment. Here is another article about the indictment. Here is a link to the DOJ's press release.
According to the DOJ's press release:
An indictment unsealed today in U.S. District Court for the Eastern District of Virginia charges Costa Rica-based Provident Capital Indemnity Ltd. (PCI), Minor Vargas Calvo, 59, and Jorge Castillo, 55, each with one count of conspiracy to commit mail and wire fraud, three counts of mail fraud and three counts of wire fraud. The indictment also seeks forfeiture of more than $40 million from all three defendants. Vargas was arrested on Jan. 18, 2011, at the John F. Kennedy International Airport, and Castillo was arrested earlier today in New Jersey.
“PCI is accused of lying to investors across the globe to sell more than half a billion dollars worth of ‘guaranteed’ bonds which turned out to be worthless,” said U.S. Attorney MacBride. “This case is another example of how the members of the Virginia Financial and Securities Fraud Task Force are working to detect, deter and punish financial fraudsters who target investors throughout Virginia, the nation and the world.”
“These defendants allegedly sold $670 million in bonds by making numerous false representations, which were disseminated to thousands of investors,” said Assistant Attorney General Breuer. “They stand accused of defrauding victims at home and abroad. As these charges show, the Justice Department is committed to rooting out investment fraud wherever we find it.”
The U.S. Attorney's office from the Eastern District of Virginia is responsible for both the Provident Capital and A&O Life criminal investigations. Hats off to the lawyers, investigators and other members of their team for bringing to justice the perpetrators of a massive financial fraud on good people who were duped by these companies.
Dr. Melvin Kamen,
Dr. Kamen, I was the one you were referring to as being misguided concerning PCI. I suggest after you read the indictments of PCI and Jorge Castillo, that you send that $10,000 check you promised, in certified funds to Mr. Thomas. I'm sure Mr. Thomas will forward that to me. I certainly hope you try to get the rest of your investments back from Fox Financial. Fox Financial is/was an interesting investment. Fox spelled out all the adverse actions against PCI and yet Fox continued to sell its bonds "presumably" to people like you. Fox relied on the sales people to skip or glance over such language in a multi-page document. The sales people relied on the naivete their chosen target, knowing the majority of investors probably would never critically review the offering document. This investment is EXTREMELY easy to consider the sales CRIMINALS as conspirators- am I right?
For the readers, right Dr. Kamen. Please let U.S. Attorney know to whom you are referring when you said that you know an individual who was paid by PCI. I hope the future Trustee/Receiver of Fox remembers to re-collect the money you received from Fox. But in the meantime, Dr. Kamen, just forward that check to Mr. Thomas.
Dr. Kamen wrote the last comment #22 of the previous PCI posting. I hope he is HONEST enough to send the reward!
Good news regarding the trial for Allmendinger and Wahab! Score one for the investors. There is no way this case will drag on for years and years in the Eastern District of Virginia. Aka "The Rocket Docket". Also, David White has copped a plea and is cooperating with the feds. Looks like Allmendinger and Wahab are going to have an uphill battle in court with 3 of their colleagues now testifying against them. Trial is set to begin March 9th.
Anyone else have any news regarding Mackert and Oncale's sentencing?
Here is the link. Enjoy.
http://finsecfraud.wordpress.com/
Allmendinger to get 22-27 years. Must wait 5 months for sentencing.
If the A in A&O stands for Arrested, the O must stand for "Oh my god... I'm going to prison."
Guilty on all counts.
http://www.google.com/hostednews/canadianpress/article/ALeqM5hhYSGqP1shI-m1nhsYvZqu85pVmg?docId=6345810