Former Nodus International Bank CEO Tomás Niembro Concha received a prison sentence of over nine years for engaging in multimillion-dollar fraud and evading sanctions against Venezuela. The case involves significant connections to Miami due to transactions with local companies, highlighting efforts to circumvent U.S. sanctions.
Niembro, a Spanish and Venezuelan national, who led the Puerto Rico-based bank, was sentenced to 112 months in prison followed by three years of supervised release. He is required to forfeit more than $16.9 million obtained from the fraudulent actions. Sentencing occurred at the U.S. District Court for the Southern District of Florida in Miami, presided by Judge Kathleen M. Williams.
The downfall of Nodus began with its founding in 2009 and peaked in 2023. Its collapse left around $80 million frozen in deposits, causing distress for many clients, including Venezuelans in South Florida. Prosecutors revealed Niembro and others facilitated the bank’s investment of $11 million in a Miami lender, eventually using the funds for personal gratification. Collaborations with former Nodus Chairman Juan Francisco Ramirez led to further illicit activities, including dealings with Nodus Finance, a Miami-based company.
In March, Niembro pled guilty to conspiring to commit wire fraud and violating the International Emergency Economic Powers Act, which underpins many U.S. sanctions. According to the Justice Department, Niembro misused his position to enrich himself and evade sanctions.
William A. Tysen Duva from the Justice Department stated, “The defendant abused his position with Nodus Bank to commit fraud for his own enrichment and to willfully evade sanctions on a designated individual.” From 2017 to 2023, at least 47 promissory notes totaling about $25.3 million were fraudulently acquired by Niembro and Ramirez. The funds from these transactions were used for personal expenses and investments.
By early 2023, authorities in Puerto Rico mandated the liquidation of Nodus, uncovering further manipulations by Niembro and Ramirez, including accepting loan portfolios from Nodus Finance to settle debts. Despite Ramirez cooperating with prosecutors, he awaits sentencing after pleading guilty last year.
Evading Venezuela Sanctions
Niembro’s actions extended to violations of U.S. sanctions on Venezuela between 2021 and 2023, involving a designated individual linked to Venezuela’s state oil company, PDVSA. The scheme involved concealing transactions and creating agreements inconsistent with authorized sanctions.
Charles Miller from IRS Criminal Investigation emphasized that Niembro’s actions threatened national security. The court documents reveal deliberate concealment from colleagues and regulatory bodies about benefiting from certain dealings within the bank.
Affected Depositors Seek Answers
For customers, Nodus provided a rare financial refuge amid tightening sanctions on Venezuela. Many Venezuelan clients found themselves unable to access funds trapped in the failed institution. By 2024, about $80 million remained inaccessible at Nodus, according to reports.
Cedeño, a Venezuelan businesswoman affected by the bank closure, expressed frustration in grappling with the impact on her commerce activities and savings. Nodus’ mismanagement led Puerto Rican regulators to revoke shareholders’ involvement in liquidation amid suspicions of conflict and fund diversion. Legal representatives of clients foresee challenges in recovering full amounts.
Attorney Carlos Calderon noted that account holders suffered the most, as clients feared substantial losses amid liquidation uncertainties.