Jorge Cherrez Mino, an Ecuadorian citizen, was the manager, president, and director of a group of investment fund companies incorporated in Florida (the "U.S. Investment Fund Companies").
John Robert Luzuriaga Aguinaga, an Ecuadorian citizen, served as the Risk Director for Instituto de Seguridad Social de la Policia Nacional (ISSPOL"), the Ecuadorian public institution responsible for managing the financial contributions by Ecuadorian police officers toward their social security. He also served on ISSPOL's Investment Committee and had influence over ISSPOL investment decisions.
According to the documents in this case, from around 2014 through 2020, Cherrez and the U.S. Investment Fund Companies paid more than $2.6 million to ISSPOL officials--including approximately $1,397,066 to Luzuriaga--who had influence over ISSPOL's investment decisions. Specifically, it is alleged that Cherrez directed payments to Luzuriaga in at least three ways: (1) payments of approximately $419,226 made by check; (2) payments of approximately $663,000 made to relatives of Luzuriaga but for his benefit; and (3) payments to a U.S.-based bank account in the name of one of the U.S. Investment Fund Companies for which Luzuriaga held a debit card in his name that he used for purchases and cash withdrawals of approximately $313,840.
On February 10, 2021, the DOJ filed a complaint in the Southern District of Florida agianst Luzuriaga alleging conspiracy to commit money laundering. In a separate proceeding, on February 19, 2021, the DOJ filed a complaint in the Southern District of Florida agianst Cherrez alleging conspiracy to commit money laundering.
On October 14, 2021, the DOJ filed an eight count indictment against Cherrez and Luzuriaga alleging conspiracy to commit money laundering, direct money laundering violations, and violations of the antibribery provisions of the FCPA. This indictment merged the two separate proceeding that had initially been filed under one docket. On November 17, 2021, the court transferred Cherrez to fugitive status.
On January 25, 2022, the DOJ filed a superseding information against Luzuriaga alleging a single count of conspircy to commit money laundering. On February 2, 2022, Luzuriaga entered into a plea agreement with the DOJ. On October 21, 2022, the court preliminarily ordered Luzuriaga to forfeit $1,397,066. On December 21, 2022, the court sentenced Luzuriaga to 58 months in prison to be followed by three years of supervised release and ordered him to pay a mandatory assessment of $100 in addituion to the forfeiture already ordered.
On November 8, 2023, the DOJ moved pursuant to Rule 35 to reduce Luzuriaga's sentence due to his providing substantial assistance in the proseution of others, and on November 30, the court granted the motion, reducing his sentence to 40 months in prison.
Cherrez remains a fugitive, so this case is ongoing.
