In the early 2000s, Roberto Gustavo Cortes Ripalda was a rising star in the world of international finance. Charismatic, well-connected and trusted by friends, family and clients, Cortes, along with his business partner Ernesto Heraclito Weisson Pazmino founded a real estate development firm called South Bay. The idea was to transform struggling properties into high-end luxury homes and, in the process, create a profitable legacy. But when South Bay began to flounder financially in 2007, that dream took a dark turn.

Biscayne Capital is born

Rather than admit defeat or scale back, Cortes and Weisson chose another path: They founded Biscayne Capital, an international investment advisory firm, which they claimed would help finance South Bay’s projects. On paper, Biscayne looked legitimate. Operating out of New York and Miami, staffed by professionals and offering what appeared to be sophisticated private investment products. In reality, Biscayne was designed to serve one purpose: Raise money to plug holes in South Bay’s finances.

This was the beginning of what would become a multi-year, multinational Ponzi scheme that defrauded investors of more than $155 million.

A house of cards

From the outset, Biscayne Capital operated with built-in deception. Investors were told they were purchasing structured financial products linked to real estate development. In reality, the money raised from new investors was immediately used to pay returns to earlier ones. It was the textbook definition of a Ponzi scheme, but wrapped in the glossy sophistication of international finance.

Cortes and Weisson orchestrated every element. They controlled how the money flowed, what investors were told and even how their portfolios looked on paper. Fake account statements were routinely sent out, showing profits that didn’t exist. In truth, the investments were sinking fast but the illusion of profitability kept new money coming in.

Investors included close friends, family members, and clients from around the world. Many trusted Cortes personally and had no reason to suspect he was lying. And that’s exactly what he was counting on.

The missed red flags

Over the years, there were several red flags that, if acted on, could have exposed the fraud earlier:

• Opaque investments: Biscayne offered complex private structured products that few investors truly understood. These lacked transparency and third-party oversight. 
• Unrealistic returns: Investors received consistent payouts regardless of market conditions. No legitimate investment operates like this indefinitely. 
• Fake statements: Account statements didn’t match actual cash flows. The numbers looked too clean, too steady and yet, no one audited them thoroughly. 
• SEC sanctions: Long before the collapse, the SEC had already flagged Biscayne Capital for undisclosed conflicts of interest and fined Cortes. He agreed to a $50,000 penalty and a three-year ban from the investment industry. This should have sent shockwaves through the firm but instead, operations continued largely as before. 

The collapse

The scheme finally fell apart in 2018 when Biscayne Capital could no longer generate enough new investment to cover its obligations. As investor withdrawals increased and scrutiny mounted, the elaborate charade began to crack. The firm entered liquidation, and over 110 investors were left with devastating losses, including many who lost their life savings.

Cortes fled to Spain in a desperate attempt to avoid prosecution, but in 2021 he was arrested and extradited to the US. His co-conspirator, Weisson, was arrested in Florida and pleaded guilty in 2022. In September 2023, Cortes pleaded guilty to conspiracy to commit wire fraud, bank fraud and money laundering. In July 2025, he was sentenced to 10 years in federal prison, ordered to forfeit $3.4 million and pay $103 million in restitution to victims.

The human cost 

The Biscayne Capital story isn’t just about numbers, it’s about real people. Retirees who trusted a polished advisor. Families who invested college funds. Clients who believed their life savings were secure.

For years, employees and associates may have suspected something wasn’t right. Some likely saw irregularities. Others may have received instructions they knew were misleading. But no one stepped forward in time to stop it.

How to spot corruption

Corruption schemes like this often survive on silence and trust. Employees and clients alike may ignore small warning signs, assuming “someone else” is checking. Here’s how to make sure that doesn’t happen:

Demand transparency

• Ask detailed questions about where funds are going, who is managing them, and how performance is calculated. 

Verify statements independently

• If account statements look too stable or profitable, seek a third-party audit or ask to see the underlying performance data. 

Challenge complexity

• Don’t be afraid to say, “I don’t understand this investment.” Complexity is a common tool used to hide misconduct. 

Watch for banned or sanctioned executives

• If someone has been disciplined by a regulator like the SEC, that history should trigger enhanced scrutiny and controls. 

Use internal whistleblower channels

• Organizations must foster a culture where speaking up is safe and valued. Fraud can only thrive when people stay silent. 

Why this case matters

The Biscayne Capital scandal is a powerful reminder of what happens when checks and balances are ignored, and when greed overtakes ethics. For Cortes and Weisson, the scheme may have started as a temporary fix to a failing business but it ended in devastation for over 100 people and the ruin of an entire firm’s reputation.

This story is a wake-up call for all employees, investors and regulators: Corruption hides in plain sight when no one’s looking. And the cost of ignoring the red flags is high.

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