What to Know
- The alleged Ponzi scheme relates to property in Costa Rica.
- The officer was arrested before boarding a flight to Costa Rica.
- Miami Mayor Francis Suarez assured that most officers conduct themselves with integrity.
The FBI has arrested a Miami police officer for allegedly participating in a Ponzi scheme.
Dermis Hernandez, 41, of Homestead, is accused of falsely representing to investors that he was able to offer a low-risk investment with guaranteed returns through high-interest loans his company made to Costa Rican property owners.
Authorities arrested Hernandez on Monday at the Fort Lauderdale–Hollywood International Airport before he boarded a flight to Costa Rica. He has been charged with conspiracy to commit wire fraud.
"It is alleged that Hernandez told investors that their investment funds provided loans for the property owners in Costa Rica whose real property would be used as collateral for the loan and forfeited if the loan was not paid," the U.S. Attorney’s Office for the Southern District of Florida said in a statement. "In truth, Hernandez and his co-conspirators used the majority of investor funds for personal enrichment and to pay the returns of other investors."
Miami Mayor Francis Suarez during a press conference on Tuesday said that this incident represents a small percentage of officers, adding that 99 percent of them conduct themselves with integrity.
Hernandez, who has been with the department for 12 years, most recently served in the marine patrol unit. The police department is "moving swiftly to terminate his employment," the chief said.
