Two Miami Beach residents have been convicted in an $8 million investment fraud scheme regarding the proposed Paradise is Mine (PIM) real estate development on Rum Cay.
A U.S. federal jury found Lawrence Foster, president of PIM, guilty of seven counts of wire fraud and conspiring to commit wire fraud last Thursday.
The same jury found PIM Corporate Officer Johana Leon guilty of three counts of structuring currency transactions.
PIM raised $8 million from approximately 90 investors, who were led to believe that PIM owned extensive amounts of land on Rum Cay, and that the invested funds would go towards further development on Rum Cay.
A report filed by the Federal Bureau of Investigation's (FBI) Miami Division stated that rank records presented to the court indicate that no money ever reached The Bahamas.
Leon was found guilty of withdrawing over $1 million in cash in increments below the $10,000 currency transaction reporting level.
It was revealed that Foster used the investment money on personal expenses.
PIM also defrauded investors by claiming that the development had been featured in publications such as The Wall Street Journal, Forbes and USA Today, and had received financial backing for sports stars, including Joe Montana.
Foster faces a maximum term of 20 years in prison for each of the seven counts, while Leon faces up to five years in prison for each of her three counts.

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