Lucky Star Diamonds Inc.

Cuban Jeweler is The Latest Florida Ponzi Schemer

Filed under: Jewelry

Another Florida Ponzi schemer has made the news. Cuban jeweler Luis Felipe Perez has been accused by the U.S. Securities and Exchange Commission of bilking at least $40 million from investors since 2006. Perez, known as Felipito in the local community, owned Lucky Star Diamonds and Luis Felipe Jewelry Designs Corporation, two businesses that have now closed. According to the S.E.C. he used investor money not to build his jewelry businesses but to spend lavishly. He bought a $3.2 million house, rented luxury cars and spent hundreds of thousands of dollars on vacations, fancy dinners and clothing for his wife. The S.E.C. alleges that he misused more than $6 million of investor money primarily raised from investors in the local Hispanic community to purportedly support jewelry businesses and pawn shops.

The complaint says he arranged "no-risk" loan agreements with investors, promising annual returns of 18 percent to 120 percent through monthly interest payments. He also told investors that their money is backed by diamonds, and even more shockingly he led some investors to believe they were beneficiaries on his life insurance policy without disclosing that the policy had lapsed. The U.S. Attorney's Office for the Southern District of Florida has also filed criminal charges against Perez.

Tags: diamonds, Lucky Star Diamonds Inc., Luis Felipe Jewelry Design Corp., Ponzi Scheme, ponzi schemer, ponzi schemes