Registers reveal Efrain Betancourt purchased a device at Epic Residences & Hotel
A Miamian implicated of operating a $66 million cash advance strategy presumably redirected dealers’ resources to bankroll their magnificent traditions, like the purchase of a $1.5 million downtown condo.
The Securities and trade payment energized Efrain Betancourt Jr. with violations associated with the securities functions in link with fraudulently elevating funds from at least 505 southern area Florida investors, quite a few of who tend to be Venezuelan-American. The SEC submitted a civil criticism against Betancourt along with his cash advance business heavens Group United States Of America on Monday.
The problem does not indicate the condo. But property documents reveal Betancourt and his partner compensated $1.5 million for unit 5101 on 54-story Epic homes & resorts in May 2019. The three-bedroom, three-bathroom unit totals 2,457 square feet. Ugo Colombo’s CMC party in 2008 produced The Epic, at 200 Biscayne Boulevard ways along the Miami River.
Starting in roughly January 2016 through March 2020, Betancourt presumably offered unsuspecting investors promissory notes which he stated might be regularly render payday loans, and presumably assured them returns as high as 120 percentage in annually, according to research by the grievance. The brief debts are for small amounts, normally from $10,000 to $150,000, to borrowers with bad or no credit.
Miamian billed in pay day loan strategy presumably splurged on $2M downtown condo
The investment possibility spread mostly by word of lips in South Florida’s Venezuelan-American people. Even though it is actually unclear whether Betancourt are Venezuelan, an SEC information production says that it’s common for disadvantages to make use of a common nationality to gain depend on.
a€?Betancourt pitched the investments in Sky team as outstanding window of opportunity for members of the Venezuelan immigrant community in order to create expense earnings,a€? based on the grievance.
About 20 percent of revenue raised was utilized as Betancourt vowed. In addition, $12 million presumably ended up being siphoned to keep air Group working, and $9.8 million allegedly was used to pay profits into the 52 telemarketers that were maybe not licensed brokers, the SEC says. These income were not revealed to investors.
Among fibs Betancourt allegedly informed buyers had been that Sky Group had a $70 million loan collection, as a way to display this as a protected possibility. One or more trader was told the guy stood getting a $31 million windfall, the SEC claims.
Whenever plan started to unravel in 2019, Betancourt allegedly advised dealers their monthly payments are suspended caused by a problem because of the vendor dealing with funding for Sky class. The conspiracy presumably turned into a Ponzi plan, in accordance with the grievance, with at the least $19.2 million of buyers’ cash always pay-off other traders.
Betancourt utilized no less than $2.9 million of buyers’ money to savor a longevity of luxury, the SEC costs. This incorporated his event at a chateau regarding French Riviera, vacations towards the Caribbean and Disney Resorts, and manage his individual Piper aircraft.
The 32-year-old’s family and friends in addition benefited, as $3.6 million got used in them for no noticeable genuine objective, the criticism says.
Betancourt is not the earliest South Floridian energized in a scam that included diverting funds inside part’s luxury market.
In May, Dusko Bruer was actually sentenced to two years in prison for evading fees and stashing $6.3 million from their profitable farming gear company in offshore account. Bruer splurged $1.6 million on a three-bedroom pond value Beach quarters in the Intracoastal Waterway for his then-girlfriend.
Bruer’s attorney at that time mentioned Bruer dropped prey to a a€?playboy way of living,a€? but that ultimately he previously legitimately attained his revenue, possessed http://www.title-max.com/installment-loans-mo doing his issues and pleaded bad.
Within the most memorable ties between real estate and fraudulence systems, a bright Isles Beach Porsche style Tower unit allegedly was applied as fees to at least one with the money launderers charged in 2018 in a $1.2 billion plan to embezzle from Venezuela’s state-owned oil providers PDVSA.