Hector Orlansky, the former CEO of E.S. Bankest, was sentenced to 20 years in federal prison for his part in one of the biggest bank frauds ever seen in South Florida. The losses in the case neared $167 million, and the judge said the lengthy prison term was because the fraud was so large.
Orlansky and his brother Eduardo used their financial services firm to defraud Banco Espirito Santo in Portugal. The firm was started in 1998, and it was in the business of factoring – buying accounts receivable from companies at a discount. E.S. Bankest defrauded the Portuguese bank by inflating the value of the accounts it bought and by presenting fake audited financial statements to the bank.
7 people in addition to the brothers have pleaded guilty or been found guilty at trial.