MutualFundWire.com: Peruvian Police Arrest an Ohioan Mutual Fund Fugitive
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Friday, December 13, 2013|
Peruvian Police Arrest an Ohioan Mutual Fund Fugitive
After more than a decade as a fugitive, an Ohio man accused of running unregistered mutual funds has been arrested in South America.
The FBI revealed that on Wednesday morning in Chorillos, Lima, Peru, the Peruvian National Police arrested of 59-year-old Eric V. Bartoli. Through Doylestown, Ohio-based Cyprus Funds, Bartoli allegedly ran a $65-million Ponzi scheme, including unregistered mutual funds, from 1995 to 1999.
A host of news outlets picked up on news of Bartoli's arrest, including: the Cleveland Plain Dealer, ABC, CNBC, CNN, NBC, and the Peruvian Times.
The SEC sued Bartoli in 1999. He was arrested but not detained in New Hampshire and became a fugitive. Federal prosecutors indicted Bartoli on 10 counts four years later, for charges including attempted income tax evasion, conspiracy, mail fraud, money laundering, sale of unregistered securities, securities fraud and wire fraud.
Bartoli is Peruvian-American, and according to the FBI Wednesday's arrest resulted from a joint operation between the Diplomatic Security Service, the FBI, and the Peruvian National Police.
FBI Press Release
Fugitive Eric Bartoli Arrested in Peru
U.S. Attorney’s Office
December 11, 2013
Special Agent Vicki D. Anderson (216) 522-1400
Stephen D. Anthony, Special Agent in Charge of the Cleveland Division of the Federal Bureau of Investigation (FBI), and Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announce the arrest of international fugitive Eric V. Bartoli, Peruvian-American, age 59.
Eric Bartoli was allegedly involved in a large-scale Ponzi scheme from 1995 to 1999. Bartoli allegedly created and operated a company by the name of Cyprus Funds Inc., (Cyrpus) which was based in Doylestown, Ohio, and incorporated in Central America and Belize. Bartoli and his co-conspirators allegedly operated Cyprus to sell certificates of deposit and unregistered mutual funds. Cyprus raised approximately $65 million from an estimated 800 investors in Latin America and the United States. Some of Cyprus’s victims include retirees.
In 1999, Bartoli was sued by the Securities and Exchange Commission (SEC) on charges involving the Cyprus Funds Inc. Bartoli did not appear at a scheduled hearing regarding the SEC charges. He was subsequently found in contempt of court and a civil arrest warrant was issued. Bartoli had fled Ohio and was arrested in New Hampshire. Bartoli was not detained at that time and became a fugitive.
On October 15, 2003, a 10-count federal indictment was filed against Bartoli in the U.S. District Court for the Northern District of Ohio. He was charged with conspiracy, securities fraud, sale of unregistered securities, wire fraud, mail fraud, money laundering, and attempted income tax evasion.
Bartoli has been featured on American Greed: The Fugitives and on a wanted by the FBI poster posted on www.fbi.gov.
Bartoli was taken into custody this morning at 6:15 in Chorillos, Lima, Peru, by the Peruvian National Police without incident. The operation was a joint effort between the FBI, Diplomatic Security Service, and the Peruvian National Police. The United States Government appreciates the government of Peru’s cooperation on this sensitive case.
“We are thankful for our continued partnership with the international law enforcement community. A team of Cleveland and international FBI resources worked closely with the Peruvian authorities to locate and apprehend Eric Bartoli,” said Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Field Office. “We hope that the long awaited prosecution of Bartoli will provide some satisfaction to the many individuals he defrauded.”
“We are gratified by the all the hard work that was done to bring Mr. Bartoli into custody,” said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.
Any questions regarding this news release can be directed to SA Vicki D. Anderson at the Cleveland Office of the FBI at 216-522-1400 or Vicki.email@example.com or Leslie Goodman at the U.S. Embassy in Lima, Peru, at (511) 999-19-4801 or GoodmanLN@state.gov
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