The indictment charges that Jorge G. Fernandez was a registered agent of the National Planning Corporation from June 2002 through February 2005. National Planning Corporation, a registered broker-dealer and a member of the National Association of Securities Dealers (NASD) is headquartered in Santa Monica, California, and maintains over 400 offices throughout the United States.

The indictment charges that between October 4, 2004, and February 1, 2005, in the Northern District of Ohio, Eastern Division, and elsewhere, Jorge G. Fernandez, devised and executed a scheme and artifice to defraud National Planning Corporation customers by fraudulently inducing said customers to liquidate and withdraw funds from variable annunity contracts held through NPC, and to provide the funds to Fernandez for investment in a “new and more favorable” annunity product.

The indictment charges that between October 4, 2004, and November 16, 2004, Fernandez incorporated an-off shore entity in Belize known as “Offshore Wealth Management Group, Inc.”, and opened an account in the entity’s name at Barrington Bank in St. Johns, Antigua, on which Fernandez was the only authorized signer. The indictment further charges that on November 16, 2004, Fernandez opened an account at Charter One Bank in Cleveland, Ohio, in the name of National Planning Corporation without the knowledge or authorization of NPC, and that Fernandez was again the only authorized signer on the account.

The indictment charges that between November 19, 2004, and January 20, 2005, without the knowledge or authorization of NPC, Fernandez contacted twelve NPC customers and falsely represented that the customers should liquidate and withdraw funds from variable annunity contracts through NPC and provide the funds to Fernandez for investment in a “new and more favorable” annunity contract. Based upon Fernandez’s representations, twelve customers liquidated their anunities and provided checks to Fernandez totaling approximately $2.2 million, which Fernandez deposited into the newly opened Charter One Bank account.

The indictment further charges that between November 23, 2004, and February 1, 2005, Fernandez transmitted, and caused the transmission of, four international wire transfers of funds totaling approximately $1.58 million from Charter One Bank in Cleveland, Ohio, to Barrington Bank in St. Johns, Antigua.

According to court records, Jorge G. Fernandez left the United States in early February, 2005, and a criminal complaint was filed in U.S. District Court in Akron, Ohio, on March 2, 2005, charging Fernandez with wire fraud and money laundering. An arrest warrant was issued for his arrest on the same date. Fernandez was arrested at the Miami International Airport on September 27, 2005, attempting to re-enter the United States by commercial airliner. According to court records, a federal seizure warrant was also obtained on March 2, 2005, for the funds transferred to Antigua by Fernandez.

The actual sentence in this case, upon conviction, may be determined by the Court after consideration of the Federal Sentencing Guidelines which depend upon a number of factors unique to each case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the unique characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

This case is being prosecuted by Assistant U.S. Attorney Robert W. Kern, following an investigation by the Akron Office of the Federal Bureau of Investigation. The United States Attorney’s Office and the Federal Bureau of Investigation wish to acknowledge the assistance and cooperation provided by the National Planning Corporation during this investigation.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.