A federal grand jury indicted Guillermo A. Clamens, Chairman of New York-based brokerage firm FTC Capital Markets, charging him with a $22 million investment fraud.
The scheme was broken up earlier this year when Citgo Petroleum Corp, a subsidiary of the Venezuelan state oil company PDVSA, sued FTC. SEC charges followed in May.
FTC is charged with taking $1.5 billion from institutional investors intended for safe, short-term investments, but instead used the money to buy high-risk securities and bonds issued by an FTC affiliate, according to the indictment (below). The scheme allegedly cost investors $22 million.
In May, federal prosecutors charged Clamens and Lina Lopez, another FTC executive, with the fraud. Lopez was arrested in Miami and pleaded guilty last week to conspiracy and securities fraud charges in connection with the scheme, but Clamens is a fugitive. Both are Venezulean citizens.
Here’s the indictment:
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