Fraud Scam Gets Accountant 54 Months in Prison

A Hackettstown resident and certified public accountant has been sentenced to 54 months in jail and ordered to pay more than $43 million in forfeiture for his role in an international fraud scheme, the United States Department of Justice announced.

Jorge Luis Castillo, 57, pleaded guilty to conspiring to commit wire and mail fraud on Nov. 21 after working as an oustide auditor for Provident Capital Indemnity, Ltd. (PCI). In addition to the prison term, Castillo faces three years of supervised release, the Department of Justice said.

He was sentenced on Friday. 

“As a licensed accountant, Mr. Castillo used his expertise to create fraudulent financial statements out of whole cloth,” said U.S. Attorney Neil H. MacBride. “Many elderly investors relied on Mr. Castillo’s credibility as an outside auditor before entrusting their life savings in this fraud scheme."

The operation affected some 3,500 people in the United States and abroad, the ruling stated. From 2004 to 2010, PCI sold at least $485 million of bonds to life settlement investment companies located in various countries, including the United States, the Netherlands, Germany and Canada, the decision said. PCI’s clients, in turn, sold investment offerings backed by PCI’s bonds to thousands of investors around the world.

For a full report on the ruling, go here.