In this publication, we’re uncovering a million-dollar investment scam that preyed on over 100 unsuspecting victims, dangling the lure of safe, sky-high returns. Let’s break it down.
Two Queens, New York residents, Lourdes Rosales Banegas and Ramon Concepcion, have been indicted for running “LNJ Funds,” a fake investment business that promised guaranteed 20% returns every 60 days—but instead funneled investor money into personal luxuries and overseas accounts.
How It Worked
- The Pitch: Victims were told they could earn a “guaranteed” 20% return every two months by investing in student loans backed by the U.S. government.
- The Hook: Investors were assured there was “no risk” and that they could withdraw funds within 60–90 days.
- The Truth: No money was invested. Instead, funds paid for airfare, hotels, shopping, and transfers to Colombian bank accounts controlled by Banegas.
- The Illusion: Some investors were paid using money from new investors to keep the scam looking legitimate.
- The Collapse: When victims tried to withdraw funds, they were lied to, ignored, or even insulted.
Who They Targeted
- “Main Street” investors—ordinary people looking for safe, high-yield opportunities.
- Individuals persuaded by personal referrals or trust in seemingly legitimate investment operations.
Recent Case
As U.S. Attorney Jay Clayton put it: “Banegas and Concepcion selfishly spent their victims’ money on themselves.” Homeland Security Investigations called it a “Ponzi scheme” built on bold but false promises.
Why You Should Care
High-return, no-risk investments don’t exist—especially ones promising clockwork payouts. These scams can wipe out life savings, damage credit, and leave emotional scars that last years. Once stolen, your money often vanishes overseas and becomes nearly impossible to recover.
How to Protect Yourself
- Be Skeptical of Guarantees: If it’s risk-free with unusually high returns, it’s almost always a scam.
- Verify Before You Invest: Check registrations with the SEC or your state securities regulator.
- Avoid Pressure: Scammers often push urgency to prevent you from doing your homework.
- Look for Independent Proof: Don’t rely solely on documents or testimonials provided by the investment promoter.
- Report Suspicions: Contact the SEC, FTC, or local law enforcement if something feels off.
Quick Tips
- Did You Know? A “guaranteed” double-digit return is one of the top red flags for investment fraud.
- Pro Tip: Before investing, research the company on FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure database.
Stay safe, stay informed.
Keyword Definitions
- Ponzi Scheme: A type of investment fraud where returns are paid to earlier investors using funds from newer investors, rather than legitimate profits.
- Wire Fraud: A federal crime involving the use of telecommunications or the internet to defraud someone of money or property.
- Money Laundering: The process of concealing the origins of illegally obtained money, often by transferring it through foreign banks or legitimate businesses.
- Illicit Finance: Financial activity involving illegal gains or used to support criminal enterprises.
- High-Yield Investment Scam: A fraudulent scheme promising exceptionally high returns with little or no risk.
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