Former CEO of Nodus International Bank Sentenced for Fraud and Sanctions Evasion

Sentencing Details

Tomás Niembro Concha, the former CEO of Nodus International Bank, has been sentenced to over nine years in prison. His conviction is tied to a fraud scheme and attempts to bypass U.S. sanctions against Venezuela. Niembro operated a bank in Puerto Rico favored by Venezuelans, including those in South Florida. He faced sentencing in Miami’s federal court by Judge Kathleen M. Williams. In addition to his prison term, he must forfeit more than $16.9 million, the funds obtained through the fraud.

The Collapse of Nodus Bank

Nodus Bank, based in San Juan, was primarily run by Venezuelans before its collapse in 2023. The bank’s downfall impacted hundreds of customers, leaving $80 million in deposits frozen. Many affected were Venezuelans in South Florida.

Fraudulent Activities in Miami

Niembro and Juan Francisco Ramirez, former Nodus Chairman, are central figures in this case. They directed the bank to invest $11 million in a Miami lender, ultimately using the funds for personal loans. The two also owned Nodus Finance, a Miami-based company used for further fraudulent transactions.

Between 2018 and 2021, Niembro and Ramirez persuaded the bank’s board to buy promissory notes totaling approximately $25.3 million. These notes benefited their personal finances. Ramirez, who pled guilty to similar charges last year, agreed to forfeit at least $13.6 million. His sentencing is forthcoming, pending his cooperation with authorities.

Sanctions Evasion Scheme

Niembro’s criminal actions included evasion of U.S. sanctions on Venezuela. Between 2021 and 2023, he conspired to carry out unauthorized financial transactions with an individual connected to Venezuela’s PDVSA. This individual owed Nodus $2.5 million. Niembro devised a scheme to foreclose on the individual’s New York property, then secretly sell it back for $4 million, violating U.S. sanctions.

Impact on Depositors

The bank’s collapse affected many depositors, particularly Venezuelans seeking financial avenues outside their home country. By 2024, depositors faced the challenge of recovering their trapped funds, estimated at $80 million. Unlike U.S. banks, Nodus was not insured by the Federal Deposit Insurance Corp. This left account holders vulnerable to significant losses.

Adelaida Cedeño, a Venezuelan businesswoman, expressed her frustration, describing how the bank’s failure threatened her business prospects. Similar stories came from others with deposits at Nodus.

Bank’s Liquidation Process

Following sanctions violations, Nodus entered a liquidation process overseen by Puerto Rican regulators. Investigations revealed inappropriate payments to directors and shareholders, prompting actions to safeguard depositor interests. Lawyers for Nodus customers feared only partial recovery of funds.