NEW YORK (Reuters) - U.S. authorities on Tuesday arrested a Peruvian man who, to lure investors, posted an online video featuring the New York Stock Exchange and himself in front of the nearby Trump Building, where he had an office, on charges that he engaged in a $1.2 million fraud.
Pedro Jaramillo, 47, raised funds from over two dozen investors since 2014, mainly to invest in commodity futures contracts with a promise of a guaranteed rate of return, according to a criminal complaint filed in Manhattan federal court.
He advertised his services in a YouTube video, flashing images of Wall Street, the stock exchange and himself standing before the Trump Building, a 72-story building at 40 Wall Street owned by President-elect Donald Trump, the complaint said.
“Why do you think large companies and financial institutions invest in Wall Street?” Jaramillo asked in Spanish in the video, the complaint said. “It is the heart of capitalism at a worldwide level. And I want to introduce you to it.”
While Jaramillo raised $1.2 million, he failed to invest the money as promised, using more than $700,000 to fund his lifestyle, including thousands of dollars on three vacations with family and guests to Disney World, the complaint said.
To hide the misappropriation, Jaramillo began operating in a “Ponzi-like fashion,” it said, distributing over $200,000 to investors from newly deposited funds.
Jaramillo, who also went by the name Enrique Jaramillo, was arrested on charges of commodities fraud, wire fraud and money laundering, prosecutors said. He was expected in court later on Tuesday.
A lawyer for Jaramillo could not immediately be identified.
According to the complaint, several of Jaramillo’s victims were lured into the fraud only after meeting with him at his office in the Trump Building, which was taken over in 1995 by the Republican real estate magnate.
No one involved in the building was accused of wrongdoing.
Jaramillo was arrested as the Federal Bureau of Investigation became convinced he was planning to leave the country, the complaint said.
Jaramillo had stopped returning calls from investors, who learned he planned to move back to Peru, where he had diverted more than $100,000 of investor funds, the complaint said.
The case is U.S. v. Jaramillo, U.S. District Court, Southern District of New York, No. 16-mj-8134.
(Reporting by Nate Raymond in New York; Editing by Dan Grebler)
Support HuffPost
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
At HuffPost, we believe that everyone needs high-quality journalism, but we understand that not everyone can afford to pay for expensive news subscriptions. That is why we are committed to providing deeply reported, carefully fact-checked news that is freely accessible to everyone.
Whether you come to HuffPost for updates on the 2024 presidential race, hard-hitting investigations into critical issues facing our country today, or trending stories that make you laugh, we appreciate you. The truth is, news costs money to produce, and we are proud that we have never put our stories behind an expensive paywall.
Would you join us to help keep our stories free for all? Your contribution of as little as $2 will go a long way.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you’ll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.