Former CEO Sentenced for Bank Fraud and Sanctions Evasion

Tomás Niembro Concha, erstwhile CEO of Nodus International Bank, has been sentenced to over nine years in federal prison for orchestrating a multimillion-dollar fraud and evading U.S. sanctions against Venezuela. The bank was notably popular among Venezuelans, including many residing in South Florida.

Niembro, 64, of Spanish Venezuelan nationality, received a 112-month prison sentence along with three years of supervised release. He must also forfeit over $16.9 million from his fraudulent dealings. His sentence was handed down by U.S. District Judge Kathleen M. Williams in Miami, Florida.

Nodus, an international bank based in San Juan, collapsed unexpectedly in 2023 with $80 million in deposits frozen. This affected numerous clients attempting to retrieve their funds, notably Venezuelans living in South Florida.

Niembro’s fraudulent actions included siphoning money through Miami companies and conspiring to avoid sanctions on Venezuela. Prosecutors revealed connections between Niembro and former Nodus Chairman Juan Francisco Ramirez. Together, they directed the bank to invest $11 million in a Miami lender, which then loaned the money back to Niembro and Ramirez.

Through Nodus Finance, a Miami firm they co-owned, they extracted millions from the bank. From 2017 to 2023, the defendants induced the bank’s executives to purchase promissory notes valued at $25.3 million, benefiting themselves.

The fraud proceeds were used for personal mortgages, credit card payments, and private investments. In March 2023, Puerto Rico’s Office of the Commissioner of Financial Institutions announced Nodus’ liquidation, leading prosecutors to report further financial manipulations involving the bank’s loan portfolio.

Ramirez, residing in Miami, pleaded guilty to conspiracy charges last year, agreeing to forfeit $13.6 million. His sentencing is pending, with his lawyer noting Ramirez’s cooperation with prosecutors.

“The defendant abused his position with Nodus Bank to commit fraud for his own enrichment,” said Assistant Attorney General A. Tysen Duva.

The Justice Department announced that Niembro also circumvented U.S. sanctions on Venezuela by engaging in prohibited financial activities. Between 2021 and 2023, Niembro worked with others on illegal transactions tied to Venezuela’s state oil company, PDVSA. U.S. sanctions barred such dealings without authorization.

Authorities learned that a sanctioned individual’s company owed Nodus $2.5 million. Niembro devised a plan to foreclose on a property in Southampton, New York, using unauthorized means. His actions prompted further repercussions from the IRS Criminal Investigation’s Florida field office.

Nodus’ collapse exacerbated issues for customers with deposits trapped due to the bank’s operational cessation. As the U.S. expanded sanctions, banks became reluctant to serve Venezuelan clients, making Nodus among the few available alternatives.

By 2024, an estimated $80 million remained trapped in the bank, significantly impacting clients worldwide. The firm’s deposits were uninsured by the Federal Deposit Insurance Corp. Puerto Rican regulators identified improper transactions that put the bank at risk, prompting further investigation and potential sanctions.

Adelaida Cedeño, a Venezuelan businesswoman residing in Spain, experienced the personal impact of the situation. She faced significant challenges due to the inability to access her funds deposited with Nodus. Legal representatives for Nodus customers expressed concerns about the limited recovery of funds.

“The losers were the account holders,” said attorney Carlos Calderon, representing several Venezuelan clients.