Former Chairman of Nodus International Bank Pleads Guilty in $13.6 Million Fraud Scheme That Led to Collapse

The chairman of the board of Nodus International Bank (Nodus), a Puerto Rican international banking entity, has pleaded guilty to leading a scheme that fraudulently diverted more than $13.6 million from the institution, a conspiracy that ultimately caused the bank’s failure in 2023.

“The defendant abused his position as Chairman of the board of directors to fraudulently divert funds from the bank that he had been entrusted to run, resulting in the bank’s collapse,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The Criminal Division is committed to investigating and prosecuting white-collar fraudsters, no matter how lofty their position, to ensure their crimes do not pay.”

“Banks hold a sacred trust — the savings, investments, and livelihoods of the communities they serve," stated U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. "Ramirez abused that trust, siphoning millions for personal gain and leaving behind collapse and loss. The Southern District of Florida will hold corporate leaders accountable when they turn financial institutions into vehicles of fraud. Our Office will continue to protect investors, safeguard the integrity of the banking system, and defend the rule of law.”

“The Chairman’s fraud brought down more than a bank — it undermined public trust," said Special Agent in Charge Emmanuel Gomez of IRS Criminal Investigation (IRS-CI) Miami. "IRS Criminal Investigation will continue to use our financial expertise to protect the integrity of the U.S. financial system."

Court records reveal that Juan Francisco Ramirez, 60, of Miami, Florida, conspired with others to siphon money from Nodus while concealing the true nature of these transactions from fellow board members, executives, and the bank’s regulator, the Office of the Commissioner of Financial Institutions of Puerto Rico (OCIF). Ramirez and a co-conspirator arranged investments and loans for their own benefit, actions in direct violation of Puerto Rican law and the bank’s policies on insider transactions.

Between 2017 and 2023, Ramirez and others funneled more than $11 million of Nodus’s funds into a Miami-based lender so it could loan the money back to Ramirez and a co-conspirator. They took steps to disguise the illegality of these insider dealings by orchestrating sham investments in the lender.

From January 2018 through September 2021, Ramirez and a co-conspirator further manipulated Nodus’s board and comptroller into approving the purchase of at least 47 promissory notes worth approximately $25.3 million from a Miami-based finance company they jointly owned. While the notes were presented as loans to legitimate businesses or individuals, the proceeds were instead diverted for personal use, including investments in third-party companies, payment of personal mortgages, and settling credit card bills.

In March 2023, OCIF notified Nodus of its intention to liquidate the bank. Shortly before the process formally began, Ramirez and his co-conspirator caused Nodus to purchase a loan portfolio valued at roughly $26 million from their Miami-based finance company, without regulatory approval. The portfolio consisted largely of delinquent, nonperforming, and uncollateralized loans. This maneuver relieved their finance company of the debt it owed Nodus from the earlier promissory note scheme, directly benefiting both the company and the conspirators.

As part of his plea deal, Ramirez agreed to forfeit at least $13.6 million, representing the value of the illicit proceeds he gained from the conspiracy. He pleaded guilty to conspiracy to commit wire fraud and now faces a maximum sentence of 20 years in prison. His sentence will be determined at a later date by a federal district court judge, who will take into account the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by IRS Criminal Investigation (IRS-CI). Trial Attorneys Javier Urbina and Samir Paul of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), Bank Integrity Unit, along with Assistant U.S. Attorney Felipe Plechac-Diaz for the Southern District of Florida, are prosecuting the matter.

By fLEXI tEAM