Former Nodus International Bank CEO Tomás Niembro Concha has been sentenced to more than nine years in federal prison. The sentencing followed a conviction for defrauding the bank and evading U.S. sanctions against Venezuela. As CEO, Niembro embezzled millions through transactions involving Miami companies. He also conspired to bypass sanctions imposed by the United States on Venezuela.
Niembro, 64, holds dual nationality in Spain and Venezuela. He received a prison sentence of 112 months and three years of supervised release. Additionally, he must forfeit over $16.9 million accrued from fraudulent activities. U.S. District Judge Kathleen M. Williams handed down this sentence in Miami.
Nodus International Bank, based in San Juan, was established in 2009. Venezuelans largely operated the bank. Its downfall in 2023 resulted in $80 million of deposits becoming inaccessible, affecting hundreds of account holders, many from South Florida.
Miami Connections to the Fraud Case
The fraud involved significant ties to Miami. Prosecutors identified that Niembro, alongside former bank Chairman Juan Francisco Ramirez from Miami, persuaded Nodus to invest $11 million in a Miami lender. This move allowed both men to benefit personally. They also co-owned Nodus Finance, a Miami firm, which facilitated further monetary extraction from the bank.
In March, Niembro pled guilty to conspiracies involving wire fraud and violating U.S. economic sanctions. His actions enabled misuse of Nodus resources for personal gain and to circumvent sanctions targeting a designated individual linked to the Venezuelan regime.
The defendant abused his position with Nodus Bank to commit fraud for his own enrichment and to willfully evade sanctions, said Assistant Attorney General A. Tysen Duva.
Fraudulent Transactions and Concealed Financial Moves
Between 2017 and 2023, Niembro and his partners concealed the personal benefits gained from certain investments and loans, misleading other bank personnel and Puerto Rican regulators.
During this period, prosecutors revealed that the fraudulent transactions were masked as investments. This maneuver allowed them to extract millions from Nodus, ultimately using these resources for personal debts and investments.
By March 2023, Puerto Rican authorities notified Nodus of its impending liquidation. In response, Niembro and Ramirez arranged for Nodus to accept a loan portfolio to reduce debts from deceitful promissory notes.
Ramirez, who cooperated with authorities, awaits sentencing. He has agreed to forfeit $13.6 million as part of his guilty plea related to the scheme.
Evasion of Venezuelan Sanctions
Beyond fraud, Niembro’s activities included evading sanctions aimed at Venezuela. Between 2021 and 2023, he engaged in unauthorized financial dealings with an individual sanctioned for supporting Venezuela’s state oil firm, PDVSA.
Nodus had legacies with a sanctioned individual owing $2.5 million on a loan. To address this, a foreclosure agreement was authorized by OFAC, yet Niembro arranged an illicit plan involving the sale of property back to the sanctioned party.
The defendant’s scheme didn’t stop at fraud; it extended into conspiring to evade U.S. sanctions designed to protect our national security, stated Charles Miller, an IRS Criminal Investigation agent.
Impact on Hundreds of Depositors
Nodus’s collapse left hundreds of depositors in turmoil as an estimated $80 million remains trapped. The failure greatly impacted Venezuelans who struggled to transfer funds internationally due to expanding sanctions.
The Miami Herald reported that many depositors worried about recovering only a fraction of their funds. The irregularities identified by Puerto Rican regulators involved self-dealing and unauthorized payments, prompting severe scrutiny of the bank’s liquidation process.
Lawyers representing affected clients indicated the entire financial debacle primarily hurt account holders. Carlos Calderon, an attorney in Miami, highlighted the grave consequences depositors faced.
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