Sentencing and the Case Background

Tomás Niembro Concha, the former CEO of Nodus International Bank, has been sentenced to over nine years in federal prison. He faces 112 months of incarceration and three years of supervised release, alongside forfeiting more than $16.9 million obtained from fraudulent activities. Niembro, a dual national of Spain and Venezuela, was sentenced by U.S. District Judge Kathleen M. Williams in the Miami Division.

Collapse of Nodus International Bank

Nodus International Bank, founded in San Juan in 2009, largely catered to Venezuelans, including those in South Florida. Its collapse in 2023 resulted in approximately $80 million in frozen deposits, affecting hundreds of customers.

Miami Connections and Fraudulent Transactions

The case has significant connections to Miami. Prosecutors revealed how Niembro, along with former Nodus Chairman Juan Francisco Ramirez, orchestrated the fraudulent extraction of millions from the bank. They invested $11 million in a Miami-based lender, ultimately benefiting personally from these funds.

Both Niembro and Ramirez owned Nodus Finance, which facilitated further fraudulent transactions. They induced the purchase of promissory notes totaling around $25.3 million from Nodus Finance for personal gain.

Plea and Guilty Admissions

Niembro pleaded guilty to conspiracy to commit wire fraud and violating the International Emergency Economic Powers Act. Assistant Attorney General A. Tysen Duva underscored Niembro’s abuse of his position for personal enrichment and evading sanctions.

Ramirez’s Role and Cooperation

Juan Francisco Ramirez from Miami, another key figure, pleaded guilty last year. He agreed to forfeit at least $13.6 million and cooperated with prosecutors, leading to a motion for consideration in sentencing.

Sanctions Evasion Involving Venezuela

Niembro also conspired to evade U.S. sanctions on Venezuela. Between 2021 and 2023, he conducted prohibited financial transactions with a person designated by the Treasury Department’s Office of Foreign Assets Control (OFAC). The Justice Department did not name this individual.

This sanctioned individual owed Nodus $2.5 million from a pre-sanction loan. Niembro devised a plan allowing Nodus to foreclose on a Southampton property, then covertly selling it back through a front company.

Impact on Nodus Customers

For Nodus customers, the bank’s liquidation followed significant uncertainties. Many Venezuelans, including those residing in South Florida, faced losses due to the bank’s failure. Nodus’s chartering as an international bank in Puerto Rico meant its deposits were not FDIC-insured.

Adelaida Cedeño, a Spaniard-Venezuelan businesswoman, expressed her distress over the fraudulent dealings. She cited how the bank’s collapse jeopardized her business and assets.

Regulatory Actions Against Nodus

The Treasury Department implicated Nodus in violating U.S.-Venezuela sanctions in 2022, leading to supervised liquidation. Puerto Rican regulators found irregular payments to directors and shareholders, inconsistent with the liquidation plan, further exacerbating issues for depositors.

Nodus’s shareholders were stripped of active participation in the liquidation, with potential sanctions under consideration.

Attorney Carlos Calderon, representing Venezuelan Nodus clients, stated that account holders emerged as the ultimate losers, fearing only meager recoveries of their funds.