Sept. 27, 2010
-- ROSA. VILLAROEL ( From Venezuela ) is the founder, and served as the principal, of ( Coravca Distribution LLC ) and TimeLine Trading .Corp , and its predecessor, are an investment broker, with its principal place of business in Miami, Florida 3785 NW 2th Ave, Miami, Florida 33166 , which engaged in three principal types of business: currency trading , import and export, and investment advisory services. VILLAROEL owned the majority of the company, and served as the Chairman of Coravca Management.
From at least the 2008 ,VILLAROEL perpetrated a ponzi scheme to defraud the clients of Coravca by soliciting millions of dollars of funds under false pretenses, failing to invest investors' funds as promised, and misappropriating and converting investors' funds to VILLAROEL's own benefit and the benefit of others without the knowledge or authorization of the investors.
To execute the scheme, VILLAROEL solicited and caused others to solicit prospective clients to open accounts with CORAVCA, based upon her promise to use investor funds to invest in the Venezuela currency market, import and exports and transportation industry, and representations that she would achieve high rates of return for clients, with limited risk. However, as VILLAROEL well knew, these representations were false. VILLAROEL failed to invest the CORAVCA investment clients' funds in solid business as she had promised. Instead, notwithstanding representations that VILLAROEL made and caused to be made thousands of account statements and other documents sent to CORAVCA clients throughout the operation of the scheme, VILLAROEL operated the Miami Ponzi scheme in which client funds were misappropriated and converted to the use of VILLAROEL, CORAVCA, and others. VILLAROEL accepted millions of dollars of investor money—cumulatively, from individual investors, charitable organizations and established on their behalf over at least two thousands of accounts at CORAVCA.
Among the false representations she made to clients and prospective clients about her investment strategy, Clients were promised that CORAVCA would invest their funds in the Venezuela currency market, and the import and export sector. To induce new and continued investments by clients and prospective clients, VILLAROEL promised certain clients weekly returns in varying amounts of up to approximately 27 percent per week. In furtherance of the scheme, VILLAROEL caused fraudulent financial statements for CORAVCA, including statements of cash flows, and reports on internal control..
As of August, 2010, CORAVCA had approximately 2000 client accounts. On July, 2010, CORAVCA issued account statements for the calendar month of July reporting that clients had requested over $9 million in funds, the total balance held by the clients is speculated to be over $50 million. In fact, CORAVCA held only a small fraction of that balance on behalf of its clients.