In short
- U.S. Department of Justice reported that Ramirez caused Nodus Bank to lose at least $23,613,371 between 2017 and 2023.
- U.S. Department of Justice stated that Ramirez fraudulently induced the purchase of at least 47 promissory notes totaling approximately $25.3 million.
What happened
The U.S. Department of Justice announced that Juan Francisco Ramirez, former board chairman and co-owner of Nodus International Bank, was sentenced to 62 months in prison, three years of supervised release, and ordered to pay forfeiture of approximately $13.6 million. Ramirez led a wire fraud conspiracy that resulted in significant losses for the bank and its depositors.
From 2017 to 2023, Ramirez and a co-conspirator illegally siphoned funds from Nodus Bank, including investing more than $11 million in a Miami-based lender and purchasing at least 47 promissory notes totaling approximately $25.3 million. These actions contributed to the bank's collapse and caused losses of at least $23,613,371.
In numbers
- 62 months in prison sentenced
- $13.6 million forfeiture ordered
- $23,613,371 losses caused to Nodus Bank
What compliance teams should check
- Review insider transaction policies and enforcement at Nodus International Bank for compliance with Puerto Rican law and OCIF regulations.
- Audit all investments and promissory note purchases involving Miami-based finance companies linked to Nodus Bank between 2018 and 2021.
- Verify voluntary liquidation procedures and OCIF notifications for Nodus Bank, especially regarding the $26 million loan portfolio purchase in April 2023.
Why it matters
This case highlights the risks posed by insider fraud and the importance of robust controls over bank transactions, especially those involving senior management. The fraudulent activities at Nodus Bank led to multimillion-dollar losses and the bank's collapse, demonstrating how weak oversight and concealment of prohibited transactions can undermine financial institutions. Compliance officers must ensure strict adherence to insider transaction policies, thorough audits of related-party dealings, and vigilant monitoring of liquidation processes to prevent similar failures and protect depositor funds.
Catch stories like these on your own customers.
complead screens your customers against adverse media, sanctions and PEP lists, and re-checks them every day. When a name you hold turns up in the news, it lands in your case queue with the evidence attached.
The former board chairman and co-owner of Nodus International Bank (Nodus Bank), a Puerto Rican International Banking Entity, was sentenced today to 62 months in prison, three years of supervised release, and to pay forfeiture of approximately $13.6 million, which represents the value of the proceeds he derived from the wire fraud conspiracy.U.S. Department of Justice, 7 Oct 2026, 12:00 UTC, justice.gov