SAN DIEGO, CA — Carlos Manuel da Silva Santos, 30, of Portugal, pleaded guilty on Thursday to charges of wire fraud conspiracy and aggravated identity theft for his role in a fraudulent scheme that operated internationally through his company, Ethos Asset Management, Inc.
Santos, who served as the founder and CEO of the San Diego-based investment firm, admitted to misleading borrowers and financial institutions with false claims about his company’s financial stability. According to the U.S. Attorney’s Office for the Southern District of California, Santos and his co-conspirators falsely marketed Ethos as a reputable “full-service project financing” company, offering loans in exchange for upfront collateral fees.
Fraudulent Operations and Misleading Claims
Santos and his team allegedly used deceptive tactics to lure borrowers into paying hefty upfront fees, promising loans that were rarely fulfilled. To make the scheme appear legitimate, Santos falsely claimed that Ethos had a successful funding history and misrepresented the company’s financial reserves.
The U.S. Attorney’s Office further revealed that Santos used new borrowers’ fees to pay back previous clients, creating an illusion of legitimate business operations. He also falsified financial statements, inflating the company’s available funds and deceiving investors. For example, Santos falsely claimed in August 2021 that Ethos had $100 million in its bank account, despite having no such funds.
Forged Documents and International Scheme
In addition to fabricating financial statements, Santos admitted to forging an audit report in May 2023. He falsely claimed that Ethos had over $2.2 billion in assets, and even forged the signature of a bookkeeping firm employee to make the fabricated audit appear legitimate.
The fraudulent operations were international in scope, affecting victims in the U.S., Brazil, and Turkey. The total loss caused by the scheme was $17,125,000, affecting U.S. investors.
Legal Repercussions
U.S. Attorney Tara McGrath emphasized the serious nature of the case, stating, “Untold numbers of people fall victim to fraud schemes every year. Whether it’s a simple email scam or an elaborate investment scheme, the U.S. Attorney’s Office will relentlessly pursue accountability for the defendants and restitution for the victims.”
Santos faces significant legal consequences for his role in the scheme. The case underscores the ongoing efforts by federal authorities to combat financial fraud and hold individuals accountable for crimes that harm innocent investors.
As Santos awaits sentencing, the U.S. Attorney’s Office continues to urge individuals to be vigilant against fraudulent investment schemes and to report any suspicious activity.
