Roberto Torres and Alejandro Torres were sentenced to 48 months and 46
months in prison on Wednesday for their roles in a $930 million
Ponzi scheme orchestrated by Miami businessman Nevin Shapiro.
Shapiro, founder and president of Capitol Investments USA, pled guilty
last year to securities fraud and money laundering in connection to the
scheme, which involved the fraudulent sale of supposedly "risk-free"
securities in a fictitious wholesale grocery-distribution business.
Roberto Torres, CFO of Capital Investments, and Alejandro Torres, an accountant
at the company, are father and son. Both men pled guilty in April to helping
Shapiro run the investment scheme.
In their plea agreements, the Torres men admitted to creating or ordering
the creation of falsified documents that showed the grocery-distribution
business was making money. In reality, Capitol had little to no income-generating
business, and was using investor funds to make principal and interest
payments to other investors. Shapiro also diverted millions of dollars
for his personal use.
Roberto and Alejandro Torres were both ordered to pay $82 million in restitution
with Shapiro in addition to their prison sentences.