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Ex-CEO Pleads Guilty to $24.9M Fraud, Sanctions Evasion Scheme
The former CEO of Nodus International Bank pleaded guilty to fraudulently obtaining millions from the bank and conspiring to evade U.S. sanctions. Tomás Niembro Concha conspired with others to siphon money from Nodus Bank, leading to its failure in 2023.
Tomás Niembro Concha, the former Chief Executive Officer of Nodus International Bank in Puerto Rico, pleaded guilty on Thursday to charges connected to a $24.9 million fraud and sanctions evasion scheme. Niembro, 64, of Miami, Florida, conspired with others to siphon funds from Nodus Bank between 2017 and 2023. According to court filings, Niembro and his co-conspirators concealed from other Nodus Bank board members and executives and the bank's regulator that certain investments and loans were for the benefit of Niembro and Board Chairman Juan Ramirez, in violation of Puerto Rican law. Assistant Attorney General A. Tysen Duva of the Justice Department's Criminal Division stated that Niembro abused his position as CEO, using the bank as his personal ATM and unlawfully transacting with a sanctioned individual. Duva added that such crimes undermine the integrity of the financial system, threaten economic prosperity, and harm national security.
Key Facts
- Tomás Niembro Concha, former CEO of Nodus International Bank, pleaded guilty to fraud and sanctions evasion.
- Niembro conspired to fraudulently obtain at least $24.9 million from Nodus Bank.
- Niembro's actions contributed to the bank's failure in 2023.
- From 2017 to 2023, Niembro and others caused Nodus Bank to invest $11 million in a Miami-based lender so those funds could be loaned to Niembro and Ramirez for their own benefit.
- Niembro and his co-conspirators concealed their conduct through sham investments.
- Niembro and co-conspirators concealed from the bank's regulator that certain investments and loans were for the benefit of Niembro and Board Chairman Juan Ramirez, in violation of Puerto Rican law.
- The Justice Department's Criminal Division is prosecuting the case.