Wayne NJ man pleads guilty to cash flow bank fraud


When a person is arrested and charged with a felony in New Jersey, police departments follow a protocol that includes reading Miranda Rights.

A Wayne man pleaded guilty Thursday to orchestrating a multi-million dollar bank fraud scheme, the US attorney’s office said.

Edward Espinal, 44, admitted to using his position as founder and CEO of Cash Flow Partners LLC to commit banking and stock market frauds from 2016 to 2019, U.S. Attorney Craig Carpenito said in a statement.

“His complex scam has tricked many investors with a substantial sum of money,” Carpenito said.

From March 2016 to December 2019, Espinal obtained millions of dollars in bank loans thanks to false statements. Cash Flow used online ads – featuring Espinal and a former telenovela actor – and even held seminars to help low-income customers get loans, the statement said.

The company’s sales staff urged customers to enroll in loan programs provided by Cash Flow and sign contracts with the company. The purpose of the contracts was to allow employees to help customers get loans from banks, where customers would keep part of the loan and repay the rest to the company, the statement said.

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Cash Flow would then use false information and documents to obtain loans for its customers, who would not otherwise qualify and pose as customers in communications with banks, the statement said.

From July 2016 to September 2019, Espinal obtained more than $ 5 million in investments from investors victims under false and fraudulent pretexts, according to the press release.

Espinal used a marketing campaign on Spanish TV channels, the YouTube “Cash Flow TV” page and live presentations at Cash Flow’s offices and elsewhere to solicit investments from clients, the statement said.

Espinal gave “promissory notes” to investors that guaranteed monthly returns on investments of between 1.25% and 4%, the statement said. The promissory notes promised that cash flow would return investors’ capital either one year from the date of the promissory note or 60 days after investors demand payment, the statement said.

Espinal told investors he would pool their funds with funds from other investors in real estate-related investments, a gold mine in Ecuador and international construction projects, the statement said.

Investor funds were used by Espinal to pay returns to previous investors, for personal expenses and for future marketing campaigns, the statement said.

Two Cash Flow employees, Raymundo Torres and Jennie Frias, have already pleaded guilty for their roles in the bank fraud conspiracy and are awaiting sentencing, the statement said.

Espinal’s sentencing is slated for Oct. 13, where he could face up to 30 years for conspiring to commit bank fraud and up to 20 years for securities fraud.

Anthony Zurita is a last minute reporter for NorthJersey.com. For unlimited access to all major North Jersey news, subscribe here. To receive the latest news straight to your inbox, sign up for our newsletter.

Email: [email protected] Twitter: @AnthonyRZurita

Read or share this story: https://www.northjersey.com/story/news/passaic/wayne/2020/06/11/wayne-nj-man-pleads-guilty-cash-flow-bank-fraud/5343214002/

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