MP dismantle RD$3,000 Million fraudulent investment network

Santo Domingo.- On Wednesday, the Public Ministry launched Operation Gaviota to dismantle a network that, through the firm Investor Winner, fraudulently captured more than 3,000 million pesos by promising victims a monthly return of 10% to 30% through bogus stock market operations.

The raids involved over one hundred police officers, prosecutors, and special units and took place in La Altagracia, Santo Domingo, Azua, Dajabón, and the National District. These operations led to multiple arrests and the seizure of evidence pertinent to the investigation.

The fraudulent network used technological means and social media to attract and deceive victims with promises of unusually high returns, far exceeding legitimate market investments.

The accused recruited individuals by convincing them they were making legitimate investments. They created companies to solicit public funds without proper permits or registrations with the Superintendency of Banks or the Superintendency of the Securities Market.

The scheme operated through multiple layers of secondary and tertiary companies, which allegedly funneled investments to the main company. However, evidence shows that less than 15% of the funds were actually invested in the broker.

Instead of making real investments, the defendants used new investors’ capital to pay returns to earlier investors, giving the illusion of financial strength through falsified account statements and manipulated financial reports.

To obstruct the investigation and erase their tracks, the defendants abandoned company shares once the scheme collapsed and fled their usual residences, moving from Higüey to Dajabón or Azua, with some even leaving the country.

These fraudulent actions have caused significant human suffering, with many victims losing all their savings, some even mortgaging their homes and other properties to invest with Investor Winner.

While the Public Ministry has received numerous complaints, many victims remain in denial, believing their money is held by an international broker. The reality, however, is that the funds never left the country, and only a small fraction was invested. The rest was used to pay interest and cover personal expenses of the defendants, including travel, cosmetic procedures, real estate, and cars.

In the coming hours, the Public Ministry will request coercive measures against eight individuals involved in the scheme.