Federal authorities have charged Lourdes Rosales Banegas and Ramon Concepcion with operating an investment fraud scheme called “LNJ Funds,” which allegedly stole over one million dollars from more than 100 victims. The indictment was announced by Jay Clayton, U.S. Attorney for the Southern District of New York, along with leaders from Homeland Security Investigations (HSI), the Federal Deposit Insurance Corporation’s Office of Inspector General (FDIC-OIG), and the U.S. Postal Inspection Service (USPIS).
According to prosecutors, Banegas and Concepcion promised investors high returns and safety for their money, but instead used the funds for personal expenses and sent some proceeds to bank accounts in Colombia.
“As alleged, Lourdes Rosales Banegas and Ramon Concepcion defrauded over one hundred victims through false promises about high and safe returns on their investments,” said U.S. Attorney Jay Clayton. “But, Banegas and Concepcion selfishly spent their victims’ money on themselves. Our office is committed to bringing those who prey on Main Street investors to justice.”
Ricky J. Patel, Special Agent in Charge at HSI New York, described the operation as a Ponzi scheme: “As alleged, the defendants fleeced over a hundred innocent victims out of millions of dollars through their sham claims of a ‘risk-free’ money-making opportunity,” he said. “Their alleged Ponzi scheme crumbled today, as did any façade of legitimacy behind their purported investment firm, LNJ Funds. Every day, HSI New York stands alongside our law enforcement partners in utilizing every tool at our disposal to ensure New Yorkers as well as those around the world, and their livelihoods, are protected from criminal opportunists’ intent on filling their pockets by any means necessary.”
FDIC-OIG Special Agent Patricia Tarasca emphasized that victims were given false assurances about recovering their investments: “The defendants allegedly made false promises as part of an investment scam involving more than 100 victims and enriched themselves while doing so,” she stated. “Despite assurances that their victims could eventually recover their invested money, this did not prove to be the case. We are pleased to join our law enforcement partners in bringing the perpetrators of such deceit to justice.”
Edward Gallashaw from USPIS warned potential investors: “The U.S. Postal Inspection Service will continue to investigate investment schemes such as this and hold those who seek to defraud the American public accountable,” he said. “Before investing, individuals should research all claims and promises of high returns made by investment companies. Too often, victims are enticed by bold promises and overlook warning signs that something may be off.”
Authorities allege that Banegas and Concepcion marketed LNJ Funds as offering guaranteed 20% returns every sixty days with no risk because they claimed investments were backed by federal student loans. In reality, officials say investor funds were not invested but spent on airfare, hotels, retail purchases for personal use or transferred abroad.
When investors tried withdrawing funds after waiting periods promised by LNJ Funds representatives—usually between 60–90 days—they were met with resistance or deception rather than payment.
Both defendants face one count each of conspiracy to commit wire fraud—a charge carrying up to 20 years in prison if convicted—and Banegas faces three additional counts related to monetary transactions involving proceeds from unlawful activity; each carries up to 10 years imprisonment.
U.S Attorney Clayton acknowledged HSI, FDIC-OIG and USPIS for their work investigating this case.
The prosecution is being handled by Assistant U.S. Attorney Christopher Brumwell with support from Paralegal Specialist Angelica Cotto at the Illicit Finance and Money Laundering Unit.
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