A Florida man, Jose Bello, was arrested on Apr. 10 for allegedly defrauding investors who believed they were funding short-term, high-return loans for real estate transactions or storm damage repair.
Bello, age 38, faces four counts of wire fraud and made his initial appearance in the Southern District of Florida. He is expected to be arraigned in federal court in Boston at a later date.
According to the charging document, Bello told investors that he worked with a group involved in short-term financing described as “private lending,” “gator lending,” or “hard-money lending.” Authorities allege that Bello recruited investors through friends and family as well as on Facebook and Discord. He is accused of providing false descriptions of investment opportunities and claiming the loans were intended for storm damage repairs. However, investigators say none of the funds were invested as promised; instead, Bello allegedly used investor money to pay purported returns to earlier investors and gambled with other funds. The government further alleges that he made false statements about missed interest payments or returning principal investments. It is estimated that Bello obtained at least $5.7 million from investors and caused losses totaling at least $1.8 million.
The charge of wire fraud carries a potential sentence of up to 20 years in prison, three years of supervised release, and a fine up to $250,000 or twice the gross gain or loss from the offense—whichever amount is greater. Sentencing will be determined by a federal district court judge based on U.S. Sentencing Guidelines and applicable statutes.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Division announced the charges on Apr. 10. Assistant U.S. Attorney David M. Holcomb will prosecute the case.
Authorities remind that all details contained within charging documents are allegations at this stage; Bello is presumed innocent unless proven guilty beyond a reasonable doubt.