MIAMI, FL — The previous chairman of Nodus International Bank, a financial institution based in Puerto Rico, has confessed to masterminding a wire fraud scheme worth millions that resulted in the bank’s downfall in 2023.
Juan Francisco Ramirez, 60, residing in Miami, acknowledged on Monday that he conspired with others to illegally redirect over $13.6 million from the bank — funds that were used for personal investments, mortgage payments, and credit card bills. Prosecutors assert that his actions were a direct cause of the bank’s failure and significantly damaged public confidence in the international banking industry.
“The defendant abused his position as Chairman of the Board to fraudulently divert funds from the bank he was entrusted to oversee,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “This is a reminder that no executive is above the law.”
The Scheme That Sank Nodus
Between 2017 and 2023, Ramirez and a co-conspirator executed a complex scheme to misappropriate bank funds:
$11 million from Nodus’s funds was directed towards a lending firm located in Miami — this firm subsequently lent the money back to Ramirez and his partner, presenting it as legitimate investments.
Ramirez masterminded the acquisition of 47 fake promissory notes from a finance company he co-owned, totaling approximately $25.3 million, all while deceiving the bank’s board and regulatory authorities.
The funds from these notes were used for personal benefit, including:
- Investments in outside companies
- Mortgage payments
- Personal credit card expenses
In March 2023, while regulators were taking steps to close the struggling institution, Ramirez tried to conceal the fraudulent actions. He orchestrated a deal for Nodus to acquire a $26 million portfolio of overdue, non-performing loans — essentially wiping out his company’s debts to the bank prior to the liquidation process starting.
“Banks hold a sacred trust,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “Ramirez violated that trust in the worst way — siphoning millions for personal gain and leaving behind a collapsed institution.”
Public Trust and Criminal Consequences
The fraud, which took place under the nose of the bank’s regulatory body — the Office of the Commissioner of Financial Institutions of Puerto Rico (OCIF) — has drawn harsh criticism for its blatant abuse of power.
“This wasn’t just a financial crime; it was a betrayal of the public’s trust,” said IRS-CI Special Agent in Charge Emmanuel Gomez, whose office led the investigation. “We will continue using our financial expertise to protect the integrity of the banking system.”
In connection with his guilty plea, Ramirez has consented to surrender $13.6 million, which reflects his personal gains from the fraudulent activities. He is now looking at a potential maximum sentence of 20 years in federal prison.
A date for sentencing has yet to be set. The ultimate ruling will be made by a U.S. district court judge, who will take into account federal sentencing guidelines and statutory considerations.
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