Ohio Investment Manager Charged in $29.7 Million Fraud

by greg1usa | March 29, 2010 at 10:32 pm

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Ohio Investment Manager Charged in $29.7 Million Fraud

Enrique F. Villalba, age 47 from Cuyahoga Falls, Ohio was charged with wire fraud earlier today. Villalba A graduate of West Point operated a scheme using numerous names including, Money Market Alternative, LP, investment and Rico Latte coffee shops.

Villalba claimed he could predict how the futures market would trend at various times during a given month allowing him to purchase and sell futures contracts to maximize gains. He is accused of defrauding 26 investors of $29.7 million.

Information filled against Villalba alleges he represented to investors he would put stop orders in place to reduce the inherent risk of the futures market. The stop orders were supposed to be orders to sell the futures contracts if it appeared investors were beginning to lose too much.

It is alleged Villalba did not put the stop orders in place as he represented resulting in the loss of millions of investor money.

The information also alleges Villalba converted millions of dollars of investors money for his own purposes including funding his Rico Latte coffee shops in Hudson and Stow, Ohio, purchasing property in Vermillion, Ohio; and making Ponzi-type payments to some of his investors.

The case is being prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Henry DeBaggis.

The prosecution is sponsored by President Barack Obama’s Financial Fraud Enforcement Task Force.

President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Now Public reporter Amy Judd reported in November 2009

Enrique F. Villalba from Cuyahoga Falls is being investigated today for running what could be his own ponzi scheme and locals are calling him a minature Bernie Madoff. He is accused of obtaining funds of more than $18 million from his friends and clients.

The FBI is involved, and two separate lawsuits filed in Akron and Seattle but the 46-year-old man has had no criminal charges filed against him at this time.