Two Defendants Charged In Investment Fraud Scheme With Over One Hundred Victims

Press Release Two Defendants Charged In Investment Fraud Scheme With Over One Hundred Victims Tuesday, August 5, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York United States Attorney for the Southern District of New York, Jay Clayton; Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel; Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of the Inspector General (“FDIC-OIG”), Patricia Tarasca; and Acting Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Edward Gallashaw, announced today the unsealing of an Indictment charging LOURDES ROSALES BANEGAS and RAMON CONCEPCION with stealing more than one million dollars from over one hundred victims through an investment fraud scheme known as “LNJ Funds.” BANEGAS is also charged with sending proceeds from the scheme to bank accounts in Colombia. The defendants were arrested and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. “As alleged, Lourdes Rosales Banegas and Ramon Concepcion defrauded over one hundred victims through false promises about high and safe returns on their investments,” said U.S. Attorney Jay Clayton. “But, Banegas and Concepcion selfishly spent their victims’ money on themselves. Our office is committed to bringing those who prey on Main Street investors to justice.” “As alleged, the defendants fleeced over a hundred innocent victims out of millions of dollars through their sham claims of a ‘risk-free’ money-making opportunity,” said HSI Special Agent in Charge Ricky J. Patel. “Their alleged Ponzi scheme crumbled today, as did any façade of legitimacy behind their purported investment firm, LNJ Funds. Every day, HSI New York stands alongside our law enforcement partners in utilizing every tool at our disposal to ensure New Yorkers as well as those around the world, and their livelihoods, are protected from criminal opportunists’ intent on filling their pockets by any means necessary."“The defendants allegedly made false promises as part of an investment scam involving more than 100 victims and enriched themselves while doing so,” said FDIC-OIG Special Agent in Charge Patricia Tarasca. “Despite assurances that their victims could eventually recover their invested money, this did not prove to be the case. We are pleased to join our law enforcement partners in bringing the perpetrators of such deceit to justice.” “The U.S. Postal Inspection Service will continue to investigate investment schemes such as this and hold those who seek to defraud the American public accountable,” said USPIS Acting Inspector in Charge Edward Gallashaw. “Before investing, individuals should research all claims and promises of high returns made by investment companies. Too often, victims are enticed by bold promises and overlook warning signs that something may be off.”According to allegations in the Indictment:[1] BANEGAS and CONCEPCION marketed and operated a supposed investment business they called “LNJ Funds.” BANEGAS and CONCEPCION told their victims that investments in LNJ Funds provided a guaranteed 20% rate of return every sixty days and that there was no risk of losing money in the investment. BANEGAS and CONCEPCION claimed that LNJ Funds could offer risk-free investments because it invested money in student loans backed by the federal government. BANEGAS and CONCEPCION also told their investors that they could withdraw their money from LNJ Funds after a waiting period of approximately 60 to 90 days. Contrary to BANEGAS and CONCEPCION’s promises, LNJ Funds did not invest the money that its prospective investors provided. Instead, BANEGAS and CONCEPCION spent money from their victim-investors on airfare, hotels, retail stores, and personal expenses. BANEGAS also sent money to several bank accounts in Colombia, including an account in her name, as well as other accounts under her control. Additionally, at times money from some LNJ Funds investors was paid to other LNJ Funds investors to perpetuate the myth that LNJ Funds was a legitimate business rather than a scam. While BANEGAS and CONCEPCION told LNJ Funds investors that they could obtain a return of their invested money after a waiting period, BANEGAS and CONCEPCION did not maintain enough money to repay their investors. Instead, BANEGAS and CONCEPCION stole and misused the investor money. Moreover, instead of repaying their investors as promised, BANEGAS, CONCEPCION, and a co-conspirator insulted, ignored, and lied to victims who attempted to withdraw their money from LNJ Funds.* * *BANEGAS, 43, and CONCEPCION, 43, both of Queens, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. BANEGAS is also charged with three counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Clayton praised the outstanding work of HSI, FDIC-OIG, and USPIS. The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney Christopher Brumwell is in charge of the prosecution, with the assistance of Paralegal Specialist Angelica Cotto. u.s._v._banegas_and_concepcion_indictment.pdf [1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated August 5, 2025 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 25-177

Press Release Two Defendants Charged In Investment Fraud Scheme With Over One Hundred Victims Tuesday, August 5, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York United States Attorney for the Southern District of New York, Jay Clayton; Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Ricky J. Patel; Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of the Inspector General (“FDIC-OIG”), Patricia Tarasca; and Acting Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Edward Gallashaw, announced today the unsealing of an Indictment charging LOURDES ROSALES BANEGAS and RAMON CONCEPCION with stealing more than one million dollars from over one hundred victims through an investment fraud scheme known as “LNJ Funds.” BANEGAS is also charged with sending proceeds from the scheme to bank accounts in Colombia. The defendants were arrested and will be presented today before U.S. Magistrate Judge Robert W. Lehrburger. “As alleged, Lourdes Rosales Banegas and Ramon Concepcion defrauded over one hundred victims through false promises about high and safe returns on their investments,” said U.S. Attorney Jay Clayton. “But, Banegas and Concepcion selfishly spent their victims’ money on themselves. Our office is committed to bringing those who prey on Main Street investors to justice.” “As alleged, the defendants fleeced over a hundred innocent victims out of millions of dollars through their sham claims of a ‘risk-free’ money-making opportunity,” said HSI Special Agent in Charge Ricky J. Patel. “Their alleged Ponzi scheme crumbled today, as did any façade of legitimacy behind their purported investment firm, LNJ Funds. Every day, HSI New York stands alongside our law enforcement partners in utilizing every tool at our disposal to ensure New Yorkers as well as those around the world, and their livelihoods, are protected from criminal opportunists’ intent on filling their pockets by any means necessary."“The defendants allegedly made false promises as part of an investment scam involving more than 100 victims and enriched themselves while doing so,” said FDIC-OIG Special Agent in Charge Patricia Tarasca. “Despite assurances that their victims could eventually recover their invested money, this did not prove to be the case. We are pleased to join our law enforcement partners in bringing the perpetrators of such deceit to justice.” “The U.S. Postal Inspection Service will continue to investigate investment schemes such as this and hold those who seek to defraud the American public accountable,” said USPIS Acting Inspector in Charge Edward Gallashaw. “Before investing, individuals should research all claims and promises of high returns made by investment companies. Too often, victims are enticed by bold promises and overlook warning signs that something may be off.”According to allegations in the Indictment:[1] BANEGAS and CONCEPCION marketed and operated a supposed investment business they called “LNJ Funds.” BANEGAS and CONCEPCION told their victims that investments in LNJ Funds provided a guaranteed 20% rate of return every sixty days and that there was no risk of losing money in the investment. BANEGAS and CONCEPCION claimed that LNJ Funds could offer risk-free investments because it invested money in student loans backed by the federal government. BANEGAS and CONCEPCION also told their investors that they could withdraw their money from LNJ Funds after a waiting period of approximately 60 to 90 days. Contrary to BANEGAS and CONCEPCION’s promises, LNJ Funds did not invest the money that its prospective investors provided. Instead, BANEGAS and CONCEPCION spent money from their victim-investors on airfare, hotels, retail stores, and personal expenses. BANEGAS also sent money to several bank accounts in Colombia, including an account in her name, as well as other accounts under her control. Additionally, at times money from some LNJ Funds investors was paid to other LNJ Funds investors to perpetuate the myth that LNJ Funds was a legitimate business rather than a scam. While BANEGAS and CONCEPCION told LNJ Funds investors that they could obtain a return of their invested money after a waiting period, BANEGAS and CONCEPCION did not maintain enough money to repay their investors. Instead, BANEGAS and CONCEPCION stole and misused the investor money. Moreover, instead of repaying their investors as promised, BANEGAS, CONCEPCION, and a co-conspirator insulted, ignored, and lied to victims who attempted to withdraw their money from LNJ Funds.* * *BANEGAS, 43, and CONCEPCION, 43, both of Queens, New York, are each charged with one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. BANEGAS is also charged with three counts of engaging in monetary transactions in property derived from specified unlawful activity, each of which carries a maximum of 10 years in prison. The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Clayton praised the outstanding work of HSI, FDIC-OIG, and USPIS. The case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorney Christopher Brumwell is in charge of the prosecution, with the assistance of Paralegal Specialist Angelica Cotto. u.s._v._banegas_and_concepcion_indictment.pdf [1] As the introductory phrase signifies, the entirety of the texts of the Indictment and the descriptions of the Indictment set forth herein constitute only allegations and every fact described should be treated as an allegation. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated August 5, 2025 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 25-177