Instituto de Seguridad Social de la Policia Nacional ("ISSPOL'') was the Ecuadorian public institution responsible for managing the financial contributions by Ecuadorian police officers toward their social security.
Luis Alvarez Villamar, a Ecuadorian citizen, was the Operations Manager at an unnamed Ecuadorian entity until approximately October 2020. The unnamed Ecuadorian entity operated a centralized depository for the clearing and settlement of securities. lts controlling shareholders were the Stock Exchanges of Guayaquil and Quito, Ecuador, and the company acted as a clearinghouse and custodian for ISSPOL investments.
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").
According to the documents in this case and in related cases, between 2014 through 2020, Cherrez and the U.S. Investment Fund Companies paid more than $2.6 million to ISSPOL officials who had influence over ISSPOL's investment decisions in exchange for the officals using their positions to assist Cherrez and the U.S. Investment Fund Companies in obtaining and retaining ISSPOL investment business. During this time, Villamar received approximately $3,155,671 as well as an apartment in Miami, Florida from Cherrez in exchange for allowing the U.S. Investment Fund Companies to act as custodian over the ISSPOL investments under the unnamed Ecuadorian entity's custody which, in effect, gave Cherrez total custody and control over these investments. Villamar allegedly understood the bribe payments he received from Cherrez were derived, in whole or in part, from the proceeds of the ISSPOL bribery scheme and the business Cherrez corruptly obtained from ISSPOL.
On May 19, 2021, the DOJ filed a single count information in the Southern District of Florida against Villamar alleging a conspiracy to commit money laundering. On July 2, 2021, Villamar entered into a plea agreement with the DOJ. On December 16, 2022, the court sentenced Villamar to 26 months in prison to be followed by three years of supervised release and ordered him to pay a fine of $7,500 plus a mandatory assessment of $100. On June 2, 2023, the DOJ moved to reduce Villamar's sentence under Rule 35 for assistance he provided in the invesigation of others. On July 7, 2023, the court granted the Rule 35 motion and reduced Villamar's sentence to six months in prison to be followed by three years of supervised release, the first six months of which would be served under house arrest.
