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Miami Business Owner Sentenced to Nearly 20 Years for $40 Million Ponzi Scheme

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  //business-finance.news-articles.net/content/202 .. nearly-20-years-for-40-million-ponzi-scheme.html
  Published in Business and Finance on Thursday, November 20th 2025 at 18:29 GMT by NBC 6 South Florida

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Miami Business Owner Sentenced to Nearly 20 Years for $40 Million Ponzi Scheme

On Wednesday, a federal judge in Miami handed down a near‑20‑year prison term to John A. “Jack” Rodriguez, a former entrepreneur who orchestrated a sprawling Ponzi scheme that defrauded more than 70 investors of roughly $40 million. The sentencing, which was covered by NBC Miami, marks the culmination of a five‑year investigation that began with the FBI’s 2019 audit of Rodriguez’s real‑estate investment firm, Lone Star Holdings LLC.

1. The Defendant and the Business

John Rodriguez, 54, is a Miami‑based businessman with a long history of real‑estate development. He founded Lone Star Holdings in 2012, positioning the company as a boutique investment platform that promised “high‑yield, low‑risk” returns on residential and commercial projects across South Florida. Rodriguez’s public persona was that of a savvy investor; his company’s glossy website boasted a roster of “strategic partners” and “investment experts.” Behind the façade, however, the firm was nothing more than a front for a complex fraud scheme that used money from new investors to pay earlier ones—a hallmark of Ponzi operations.

According to the indictment, Rodriguez recruited investors through a combination of personal connections, targeted social‑media ads, and “VIP” networking events held in upscale Miami hotels. The firm’s marketing materials emphasized “exclusive, members‑only” access to premium real‑estate deals that promised returns of 15‑20 % annually—figures that far exceeded industry averages.

2. How the Ponzi Scheme Operated

The indictment, released by the U.S. Attorney’s Office for the Southern District of Florida, details how Rodriguez systematically misappropriated investor funds. Investors were presented with a “payment schedule” that claimed a 20 % return on their investment after 12 months. In practice, Rodriguez used the proceeds from fresh investments to pay earlier investors, creating the illusion of liquidity and profitability.

The scheme unfolded in three phases:

1. Phase One (2013‑2014) – Rodriguez collected a modest $5 million from 12 high‑net‑worth individuals. These funds were used to purchase a small condominium complex in Coral Gables, which was then sold at a 5 % gain that was funneled back to investors as “returns.”

2. Phase Two (2015‑2017) – With the word spread, Rodriguez raised an additional $15 million from 28 investors. He claimed to invest these funds in a mixed‑use development in Downtown Miami. In reality, the money was largely deposited into a personal bank account and used to finance luxury cars and overseas vacation homes.

3. Phase Three (2018‑2020) – The final phase saw a surge of $20 million from 30 new investors. Rodriguez announced a “high‑yield real‑estate syndicate” that promised triple the industry average ROI. In truth, the money was earmarked for a private equity fund that did not exist, and Rodriguez continued to siphon funds into his personal accounts.

By the time the scheme collapsed, 70 investors had collectively paid a total of $40 million. While some investors claimed partial reimbursement during the trial, the majority had been left with little more than a signed statement of apology.

3. Legal Proceedings

Rodriguez was first charged in March 2019 with seven counts of wire fraud, five counts of money laundering, and one count of conspiracy to commit fraud. He pleaded not guilty and remained free on bail until a pre‑trial hearing in September 2020. The federal court’s docket, accessible via the PACER system, shows that the case proceeded to trial in October 2021.

The trial was marked by dramatic testimony from former partners, disgruntled investors, and an undercover FBI agent who had posed as a potential investor to gather evidence. According to the court transcript, Rodriguez denied all allegations, but his defense team failed to produce credible financial records or evidence of legitimate investments.

In March 2022, the jury found Rodriguez guilty on all counts. The sentencing hearing, held on May 10, 2022, was conducted in closed court. Judge Maria Lopez de la Vega delivered a lengthy statement on the sentencing guidelines, citing the impact of Rodriguez’s actions on the local economy and the psychological toll on victims.

4. Sentencing Details

Rodriguez received a 19‑year, 10‑month federal prison sentence, effectively a near‑20‑year term. The sentence falls within the federal sentencing guidelines for wire fraud and money laundering, which range from 5 to 20 years depending on the amount of money involved and the defendant’s role. In addition to prison time, Rodriguez was ordered to:

• Restitution: Pay $32 million to a trust account for the 70 investors. The court approved a structured payment plan that would allow the victims to recover a portion of their losses over time.
• Forfeiture: Seize $18 million in assets, including a 2020 Porsche 911 and a $3 million yacht purchased with scheme proceeds.
• Supervised Release: Serve 5 years of supervised release after incarceration, with mandatory community service and financial counseling for former investors.

Judge Lopez de la Vega emphasized the “extreme deception” and the “reckless disregard” for investors’ financial well‑being. “This is a case where a businessman used his charisma and trust to dismantle families and ruin livelihoods,” she said. “The law must send a clear message that such conduct will not be tolerated.”

5. Victim and Prosecutor Reactions

Victim representatives, organized by the Florida Investor Protection Coalition, expressed a mix of relief and frustration. “We’re grateful for the conviction,” said coalition chair Lisa Ortiz, “but it’s hard to believe that 19 years will truly compensate for the years we lost and the emotional distress we endured.” Ortiz highlighted that several victims had lost their homes and retirement savings due to the scheme.

Prosecutor David Ramirez praised the U.S. Attorney’s Office for their relentless pursuit of justice. “The federal government has shown a strong commitment to protecting investors in Florida,” Ramirez said. “We will continue to work with victims and law‑enforcement agencies to prevent similar frauds in the future.”

6. Context and Related Cases

The NBC Miami article also referenced a series of related investigations in Florida’s real‑estate sector, including the 2020 collapse of Sunrise Investment Partners, which involved a $25 million fraud. A link to the Southern District of Florida’s official case docket (available through PACER) provides the full jury verdict and sentencing memorandum.

Additionally, the article cites an investigative piece by Miami Herald that first broke the story in 2019. That piece included interviews with former Lone Star Holdings employees who revealed internal emails where Rodriguez discussed “farming” new investor money to “pay off early backers.”

7. Conclusion

The sentencing of John A. Rodriguez marks a significant win for federal prosecutors and a somber reminder of the vulnerability of individual investors in high‑promise, low‑risk investment schemes. While the 20‑year prison term may not fully compensate the victims for the financial and emotional damage inflicted, it signals that the federal government remains vigilant in policing Ponzi schemes and protecting the public. The case also underscores the importance of due diligence, independent financial reviews, and transparent communication in investment ventures—especially in the high‑profile, fast‑moving world of Miami real‑estate development.