| NEW YORK
NEW YORK Dec 20 U.S. authorities on Tuesday
arrested a Peruvian man who, to lure investors, posted an online
video featuring the New York Stock Exchange and himself in front
of the nearby Trump Building, where he had an office, on charges
that he engaged in a $1.2 million fraud.
Pedro Jaramillo, 47, raised funds from over two dozen
investors since 2014, mainly to invest in commodity futures
contracts with a promise of a guaranteed rate of return,
according to a criminal complaint filed in Manhattan federal
He advertised his services in a YouTube video, flashing
images of Wall Street, the stock exchange and himself standing
before the Trump Building, a 72-story building at 40 Wall Street
owned by President-elect Donald Trump, the complaint said.
"Why do you think large companies and financial institutions
invest in Wall Street?" Jaramillo asked in Spanish in the video,
the complaint said. "It is the heart of capitalism at a
worldwide level. And I want to introduce you to it."
While Jaramillo raised $1.2 million, he failed to invest the
money as promised, using more than $700,000 to fund his
lifestyle, including thousands of dollars on three vacations
with family and guests to Disney World, the complaint said.
To hide the misappropriation, Jaramillo began operating in a
"Ponzi-like fashion," it said, distributing over $200,000 to
investors from newly deposited funds.
Jaramillo, who also went by the name Enrique Jaramillo, was
arrested on charges of commodities fraud, wire fraud and money
laundering, prosecutors said. He was expected in court later on
A lawyer for Jaramillo could not immediately be identified.
According to the complaint, several of Jaramillo's victims
were lured into the fraud only after meeting with him at his
office in the Trump Building, which was taken over in 1995 by
the Republican real estate magnate.
No one involved in the building was accused of wrongdoing.
Jaramillo was arrested as the Federal Bureau of
Investigation became convinced he was planning to leave the
country, the complaint said.
Jaramillo had stopped returning calls from investors, who
learned he planned to move back to Peru, where he had diverted
more than $100,000 of investor funds, the complaint said.
The case is U.S. v. Jaramillo, U.S. District Court, Southern
District of New York, No. 16-mj-8134.
(Reporting by Nate Raymond in New York; Editing by Dan Grebler)