Original subtitles

In this episode of American Greed, everything about Miami businessman

Osorio says, trust me. With Jeb Bush on his board of directors, Hillary Clinton

at his home, and NBA basketball players at his side, Osorio hustles his way to

the top.

Here I am with the president -to -be. What other sealed approval do you need

show the world I'm legitimate?

Cleverly playing to charitable instincts in people, he sets up his victims to

unwittingly sell his lies.

We are rebuilding a future that is so bright, and I'm happy to be a part of

process. Claudio Osorio pretends to be a humanitarian entrepreneur, but he is

not nearly as good as the company he keeps.

And no one can even imagine the truth.

He is a fraudster. This guy's a sociopath.

In 2011,

in a Miami law office, Claudio Osorio sits for a videotaped deposition.

He's asked a simple question.

Was the company ever making money?

If you ask me, okay, I don't know. Every question today, what's the team I'm

asking you? Yeah, I don't know. Yeah, I don't know, Mr. Buckley. I don't know.

The company in question is his own international business.

Did the company lose money?

I don't know one way or another, no.

What is going on here?

How could a CEO not know if his own business is profitable?

If it lost money, do you know whether it lost a little money or a lot of money?

I don't know one way or another, no.

What is Claudio Osorio's game?

For the answer, we need to go back to 1997.

You're the master of achievement.

Bringing life to ideas from your soul.

An awards presentation is underway.

Tonight, we celebrate excellence.

It's the prestigious Ernst & Young Entrepreneur of the Year Award.

Entrepreneur of the Year is... You ready, Lewis? All set.

Claudio Osorio.

Claudio Osorio is 38 years old. He is the founder and CEO of the third largest

computer distributor in the world.

Starting out of a 250 square feet small office in my home country in Caracas,

Venezuela, I would have never dreamed that 12 years later a $5 billion...

It is impressive.

Osorio starts the company CHS Electronics when he is just 25.

Headquartered in Miami, it sells computers anywhere but the U .S. His

is simple.

Buy out the competition wherever he can.

Tonight, as he accepts his award, he is operating in 39 countries.

are made of unlimited energy, of fearless and sheer determination.

At this moment, Claudio Osorio is on top of the world.

And more impressive than his award is his new address, Miami's Star Island.

He had a house just to the left of one of the yachts you see out there.

Business reporter Paul Brinkman says Star Island, home to celebrities and

wealthy CEOs, is a perfect choice for Osorio.

It was a way to build his credibility by saying he lived among those people. It

was a way to meet them. It was a way to get involved in the charity

organizations that they were involved in.

At the end of 1997, as Osorio and his family settle into the world of the rich

and famous on Star Island, computer hardware businesses are heading into

times. But oddly, CHS is doing fine.

CHS was going the opposite way. They were growing both in terms of volume

most importantly, in terms of profitability.

Throughout the next year, Osorio announces record earnings, and CHS

trading on the New York Stock Exchange, soars. He has an explanation.

Osorio says that the people who are in charge of his company in each country

local people who know the business practices of that country.

This year, those local people also know the truth.

Their companies are losing money.

One local manager eventually contacts Glenn DeValerio, an attorney for CHS

shareholders. He says that he and others are suspicious.

They knew that if all of them were reporting downturns in profits, how was

that the company was continuing to report record sales and record earnings?

The answer is what they come to call Claudio's magic.

Submit a statement showing a loss to Osorio in Miami, and presto, that loss

becomes a profit.

It is also called cooking the books, and it's a surefire way to keep a company's

stock on the rise.

And so CHS stock continues to climb, but Osorio's game can't last.

As they got close to the end of the fiscal year, rumors started to surface

some problems with the financial reports.

Osorio must know he will be exposed. And so in March 1999, announcing a find of

discrepancies in its financial reports, he reports that CHS profits in 1998 were

actually millions of dollars lower than originally reported.

And he quickly blames someone else, pointing the finger to Paris, to the

president of European operations, who resigns.

Wall Street learns that not only were the numbers going to have to be

but they were the product of wrongdoing. And that is the kiss of death on Wall

Street.

CHS stock plummets.

Shareholders lose tens of millions of dollars on that one day.

And so they sue, charging Osorio with fraud in civil court.

This was an open and shut case.

The conduct here, once revealed, was very easy to unravel.

There's nothing complicated about the fraud.

The case is settled out of court. The board of directors insurance policy pays

out more than $11 million, which does not come close to the amount lost by

shareholders.

CHS declares bankruptcy.

But there's no real shame in that among the swashbuckling crowd Osorio runs

with. And as long as no one looks closely, no one will discover that many

Osorio's shareholders believe he defrauded them and got away with it.

Next on American Greed, Osorio says he has dreams to house the poor.

But who is he really helping? The fact that Claudio Osorio would divert that

money from helping the Haitian people and save Haitian lives is one of the

despicable, low things that anyone could do.

For four years from his base on Star Island, Claudio Osorio looks for a new

ticket to fame and fortune.

Finally, in 2004, he stumbles on an idea that appears to be the opportunity of a

lifetime.

An inventor in Germany wants to use fiber composite material used in boats

create buildings of all kinds.

Homes, hospitals, office buildings.

Osorio buys the idea and launches his new company in Ovita.

The big selling point was that these fiber composite panels would be more

efficient than using traditional building materials such as wood, steel,

concrete.

Imagine the potential.

For millions of people living in makeshift housing around the world,

offering an answer.

A real home that can be built at little cost in a matter of days.

The buildings are said to be fire resistant, able to withstand hurricanes

even earthquakes.

What he sells to investors is not only a chance to make money, but a chance to

make the world a better place.

Former U .S. Attorney Kendall Coffey represents one of Osorio's investors.

What's unique about Osorio is he targeted people that wanted to do good.

And he appealed to their instincts to try to create a product that could be

transformational and very, very beneficial for millions.

Looking for investors, Osorio turns to Star Island neighbor Engin Yasil, a real

estate developer who sees the potential for Navita housing in his home city of

Istanbul. It was important to him to be able to provide affordable housing in

his own backyard.

This would be a wonderful thing for him to be able to provide this to the

community.

Yaseel invests close to $8 million for a 30 % share in Innovita, and the

business takes off.

Osorio announces a $60 million contract at the Al -Kahil Equine Theme Park in

Dubai.

And that, he says, is on top of contracts in Spain, Portugal, and India.

And an Innovita factory has just opened in Miami.

Having the product itself here in North Miami Beach and investors were able to

walk through it, see it, touch it, envision it in the state that they were

to implement it, that was a huge selling point.

The company is on a roll, and it gives Osorio the ability to attract a stellar

board of directors.

Miami developer Jorge Perez, retired General Wesley Clark, and the big get,

former governor of Florida, Jeb Bush.

who is paid $15 ,000 a month as a consultant and board member.

The board of directors was an all -star cast.

People loved the concept of Inivida. What it could do in third world

is something that I think everybody would stand behind.

Selling the company with Osorio is his partner, his wife, Amaryllis, who casts

herself as a compassionate humanitarian.

She says she believes that every person has the responsibility with the world

and with God to give, especially when you have so much.

That's why she raises money for orphanages in Siberia and daycare

Venezuela.

Closer to home, she raises money for Hillary Clinton during her 2008 campaign

for president.

And that is how she meets Chris Korge, a millionaire real estate developer and

longtime supporter of Bill and Hillary.

What I brought to the table was the prize of all prizes on the Democratic

I brought the Clinton -Obama race.

In the fall of 2007, as Amaryllis and Korge plan a fundraiser for Clinton at

Osorio's house, Korge gets to know Claudio.

With the backdrop of seeing him interact with his own children, he looked to me

like, you know, father knows best.

You know, almost like a perfect kind of father.

A turning point comes in June 2008 when Clinton concedes the Democratic

nomination to Barack Obama and supporters of the former opponents need

peace with each other.

Korg is impressed by what he sees as Osorio's sense of fair play.

What Claudio did was he invited us all to lunch at his house one day and kind

mediated in such a way, talking to the Obama folks that, you know, we need to

come together here.

So that was another factor to me that said to me, this is a really good guy.

You know, good family, strong board of directors.

I couldn't find a lot wrong with the picture.

And there seems to be nothing in his past to cause any concern.

Jeb Bush hired a private investigator to investigate Osorio, Innovita, to make

sure that he wasn't getting involved in a company or with individuals that would

create political problems for him in the future.

The allegations of fraud at CHS do not raise red flags.

At least, not yet.

Next on American Greed, Claudio turns 50 and his well -wishers turn out. Happy

birthday. Happy 50th. We're at your house right now.

By 2008, as the world teeters on the brink of the Great Recession, Claudio

Amaryllis Osorio appear to have nothing to worry about.

Living on Star Island, there is a Maserati in the garage and an expensive

at the dock.

And who can miss that diamond ring that Amaryllis displays so prominently?

They were spending $100 ,000 to $200 ,000 on a credit card every month.

They had an apartment complex in Switzerland.

They had another apartment complex in Telluride, Colorado.

But they always need more money. And together, Amarillo and Claudio are

every possible source of cash for Innovita. And now they are making their

into a whole new league.

The NBA.

Reaching out to star players like Dwight Howard, Alonzo Mourning, Howard Isley,

and Carlos Boozer.

In 08, there were several.

professional athletes that were introduced to Mr. Osorio.

Attorney David Nunez represents Carlos Boozer and his wife, Cindy.

Mr. Osorio presented as a very successful, wealthy, savvy international

businessman.

In late spring, the Boozers and other potential investors are invited to a

presentation on Innovita at the Osorio Star Island House.

Just the fact that he had a residence there already lent him some credibility.

And so does his resume.

Entrepreneur of the year. Former CEO of a Fortune 500 company.

That in and of itself lends him tremendous credibility and makes him a

child. Really, I mean, he's a whiz.

And then there is Innovita, already operating around the world. It could not

more impressive.

Of course, a selling point is the involvement of someone like Jeb Bush.

It gives you a sense of comfort because one can't imagine individuals of that

stature just nilly -willy getting involved.

But best of all is the financial picture.

Osorio presents a company doing a booming business with a stunning amount

cash on hand.

It was $40 million in reserves, debt -free.

A pipeline of construction projects worth hundreds of millions of dollars in

works and gaining global recognition.

The entire pitch was a masterpiece.

He had all the pieces in place to persuade everybody that, you know, if

didn't do this, you really are missing the boat.

Finally, the kicker of the presentation to investors is an invitation to a

private meeting arranged by the Osorios with then -candidate for president

Barack Obama.

It will be held at the home of Chris Korge, and Osorio makes sure his

investors get special treatment.

Claudio organized at my house a private meeting with, at the time, Senator Obama

and all of these NBA players like Carlos Buzer. Because of something like that,

it raised the level of credibility that Claudio Osorio had.

Osorio can arrange a private meeting with Barack Obama?

That's impressive.

It's like catching the big fish.

Here I am with the president -to -be. That's a big deal.

What other shield of approval do you need to show the world I'm legitimate?

What else?

Nothing else.

And eventually Dwight Howard, Howard Isley, and Alonzo Mourning invest in

Innovita.

For Cindy and Carlos Boozer, the decision to put their money into the

not easy.

These folks are folks that are hardworking, that value what they have.

Mind you, he wasn't drafted in the first round.

Second round draft picks don't get guaranteed contracts.

He had to work hard to earn what he became in the NBA.

And so Osorio plays it cool.

He calls Carlos not to ask.

for him to invest but to say to him hey you know what there's a program called

nba cares and this program does a lot of work in africa i want to donate homes

to that program he does it to back off from the aggressive solicitation and to

show that you know what you don't have to invest but just let me help this

it works in august 2009 the boozers invest one million dollars Buying more

than 5 million shares of Innovita at the bargain price of 19 .5 cents a share.

The money is coming in from all over.

A developer in New York has given Osorio a million dollars.

Another in Tanzania is investing 2 million dollars in an Innovita project

build floating villas in Hamburg, Germany.

And finally, Osorio turns his attention to Chris Korge.

He said, look, you're trustworthy and you're smart and you're engaged. You

about the community.

I would love for you to be part of the company. And you don't have to make a

investment. Make whatever investment you feel comfortable with.

And he shows Korge the financial statements.

As anyone would, I focus on the numbers.

Not on some small words that I can't see without glasses.

Okay, I mean, I have to squint to look at the numbers.

And the numbers say that in 2008, the company has $37 million in cash, and

it will end 2009 with $39 million also in cash.

So you're seeing numbers that follow the story.

What Korge doesn't see without his glasses is the word in the top right

corner.

Unaudited. There is nothing official about this document.

And what he doesn't know is that in Dubai, checks written from Innovita are

reportedly bouncing.

And that Amaryllis is asking Innovita employees to take a cut in pay.

And that the Swiss government has opened a criminal investigation into

allegations that at CHS, Osorio created false financial statements in order to

obtain $220 million in loans from Swiss banks.

That is not widely known. And everything that Chris Cord sees looks as good as

it gets.

After seeing the financials and seeing the board and the entire picture, I

thought, I'll invest $300 ,000 in the company.

That'd be a good starting point.

And it wasn't like he was hunting me down to get the check.

Gorge buys 1 ,250 ,000 shares in Innovita.

Two months later, it is Osorio's 50th birthday party.

And this crowd of well -wishers is impressive.

You have many, many happy, healthy birthdays, Mark, and that we're there to

share it with you. He's got an incredible vision.

He's driven, hardworking.

Happy birthday. Happy 50th. We're at your house right now.

We want to wish you a happy birthday.

We love you. We're proud of you.

Let's go get drunk.

Chris Korg is there, and it is not at all the most extravagant 50th birthday

party he has seen.

It was nice.

Sure, it cost, you know, $100 ,000.

But, I mean, he's got $39 million in cash sitting in one of the companies,

he owns 98 % of all the stock.

So in Korg's mind, Osorio has money to burn on his birthday.

He just doesn't know it's his money that he's burning.

Next on American Greed, turning a natural disaster into opportunity, as

Claudio Osorio can.

Along comes Osorio, and he says, I will do something in Haiti. I will build

homes.

January 12, 2010.

The attention of the world turns to a crisis of immense proportions in Haiti.

A 7 .0 magnitude earthquake has destroyed the capital city of Port -au

Hundreds of thousands of people are killed.

More than one million are homeless.

And Claudio Osorio steps in to seize the moment.

He borrows a private jet from a New York investor and brings his team.

With Chris Korge, Alonzo Mourning, and retired General Wesley Clark front and

center right to the heart of the crisis.

The purpose was to bring medicine that was desperately needed there to save

lives.

Literally, you couldn't leave there without tearing up to seeing that

devastation and carnage.

And to see people in these tents.

For Osorio, it all spells one thing.

Opportunity.

Returning to the U .S., Osorio calls a press conference to announce that

will donate 1 ,000 homes to Haiti.

His believers put their reputations on the line for him.

And I'm happy to be a part of the process.

The national media picks up the story.

Claudio Osorio is headline news.

Armed with good press and impeccable credentials, he heads to Washington for

meeting with the Overseas Private Investment Corporation, OPIC, a

agency that helps U .S. businesses invest in worthwhile projects in the

developing world.

He's looking for a loan to help Innovita build a factory in Haiti.

There was clearly a desire and a sense of urgency on the part of the federal

government to do something in Haiti at that time. And along comes Osorio, and

says, I will do something in Haiti. I will build homes.

He presents his financial statements with that stunning figure of cash on

$39 million.

And just two weeks after the earthquake, OPIC announces a $10 million loan to

Innovita. Osorio gets more than $3 million to start.

Working hand -in -hand with Osorio and all of the company's business now is

Chris Korch, who has invested over $300 ,000.

We were in touch three times a day.

We saw each other four times a week. We told each other about very personal,

family -related things, you know, successes and challenges in our

with our children, the good, the bad, the ugly.

And so Osorio knows Corge is worried about his real estate business.

The market in Florida has crashed.

He owes $28 million on properties worth approximately $5 million.

One of the things that he was an expert at was as a concerned friend, he wanted

to know how he could help me.

And that further endeared him with me.

And suddenly an opportunity presents itself.

Rosario says a group of sovereign wealth funds in the Middle East wants to buy

20 % of Innovita for $500 million.

It is not that far -fetched. Governor Bush had told me that he had gone to the

Middle East and actually saw a floating home that was built, I think, in

Abu Dhabi, and that he had seen the factory in the middle.

Osorio says the deal will create a huge windfall for Innovita's investors.

He says courage can make a killing, especially if he buys more Innovita

I didn't know what I could afford to buy. I mean, I had to meet all my other

financial obligations.

And so Osorio sweetens the pot.

He says he will be getting more than $400 million when the deal closes, and

is willing to share.

He goes, I don't need this money.

He goes, whatever you can raise, I'll match it for you.

It's a gift almost, okay?

The hook has been set.

Cord wants in.

Problem is, he doesn't have the cash.

So in March 2010, he borrows $3 million.

Combining that with money of his own, he invests $3 .7 million, believing the

deal will close in just over a month.

I felt like this guy was doing me the biggest favor ever that anyone's ever

for me.

Meanwhile, the homes Osorio promised for the survivors of the Haiti earthquake

should be nearing completion by now.

I worked for a number of weeks trying to get answers out of Inabida at that

point and saying, you know, are you really building homes in Haiti? And they

would say yes. Then I would say, well, send me some pictures.

Tell me where the homes are in Haiti.

OPIC is asking, too.

When Osorio reports that he has completed 60 homes, the agency's local

representative heads out to see them.

She writes back, I didn't see any constructed homes.

OPIC decides to hold off on sending any more money to Claudio Osorio.

I remember thinking, is it really possible that somebody could claim they

going to do such a wonderful thing and then...

Have no intention of doing that and just take your money instead.

Next on American Greed, Osorio's real talent.

He never showed tension. He never showed fear.

Osorio was the best liar I've ever seen.

Watch Osorio dodge the truth at cnbcprime .com slash American Greed.

Want inside information from the show?

Join the Greed social network.

Like us on the American Greed Facebook page.

We'll be right back.

In the spring of 2010 in Coral Gables, Chris Cord says he is paying $25 ,000 a

month in interest on a $3 million loan.

He has borrowed the money in the hope that it will free him from an even

debt. Even though I made a fantastic income, I couldn't pay off.

$28 million in loans.

I didn't have that kind of cash.

And I personally guaranteed all these loans.

So this was my Hail Mary path.

He expects to pay the $3 million loan back as soon as a group of Middle

investors finalize their $500 million purchase of shares in Innovita.

The Sovereign Wealth Fund was supposed to close by May 5th. So May 5th came.

And I wasn't terribly alarmed. I was talking to Claudio frequently, almost

day up until the 5th.

After almost two weeks, I called Claudio, and I said, Claudio, what's

He goes, it's just, you know, lawyers, they take forever to get this done.

And then I started hearing less from him.

And so Kort calls Inovita's chief financial officer to see what he knows

the sovereign wealth fund.

He goes, oh, those sovereign wealth funds from the Middle East?

When we met with them back in February, they told us that the company wasn't

developed enough yet for them to invest in the company.

Well, my heart dropped.

His next call is to Osorio, who quickly tells Corge the CFO is not in on the

deal and knows nothing.

I said to him, Claudio.

If this deal doesn't close in the next 30 days, I need all my money back. He

goes, Chris, if you want all your money back, I'll give it all back to you.

Corge waits.

June, no deal.

July, no deal.

And now Osorio is impossible to reach.

In July, he tells Corge he is in Venezuela, but he is seen in Martha's

In August, Amarillo sends Corge a text saying Claudio is out of the country and

she is in New Orleans. And they are seen having lunch at Prime 112 in Miami

Beach. When Osorio says he is visiting his father who has had a stroke, he

the lie just a little too far.

When the guy sent me... A picture of a man in a bed with tubes

coming out of his throat and oxygen masks.

I thought to myself, oh, my God, I am so done.

This guy has taken me, you know, who would do something like that?

And the evidence mounts.

Osorio's Star Island neighbor, Nguyen Yaseel, is suing him.

He wants his $8 million back because he discovers Osorio's entire sales pitch is

not true. What he found out was that the cost that Osorio claimed would be

attended to these prefabricated panels to be able to build a home was way,

way, way, way, way off.

And that businessman in Tanzania who put in two million to invest in a floating

village is in court saying Osorio never sold a single floating home.

He wants his money back.

Finally, in September, Chris Courage files a lawsuit against Claudio and

Amaryllis. His lawyer, Kendall Coffey, sets up a meeting with Osorio.

Claudio basically said, look, clearly our relationship has...

been severely damaged.

Ta -da!

Severely damaged.

I want to kill him, okay?

And so he says, so I'll just get him his money back.

Osorio was the best liar I've ever seen.

He could look at you eye to eye, not a flinch, not a whisper of weakness

or any possibility that he could be doing anything wrong.

Cord received nothing from Osorio.

And as news of his lawsuit hits the press, Amaryllis flies into action,

up a lunch meeting with Cindy Boozer.

She said that Korg was behind this campaign to extort Innovita, to give him

300 % of his original $4 million investment, but to don't worry, we have

million deal with China.

I've seen the project. I've seen it constructed and being worked on. I

personally went there myself.

As the court proceedings in Corge's suit begin, the focus is on that $39 million

in cash.

It's time to show Corge the money.

From the beginning of the litigation, Osorio was assuring the court that the

money was there and that there would be documents to prove it.

But he stonewalls. He refuses to submit his financial records.

Osorio was clearly just trying to fight to live another day and would say

anything and do anything if he could just buy a little more time.

By March, the judge has had enough.

She orders Osorio to pay $4 million to Corge. And she goes a step further.

She appoints a receiver to take over in Evita.

Claudio Osorio is no longer in charge.

Next on American Greed.

The entrepreneur of the year plays it dumb.

Have you ever looked at a bank statement?

That's a lay person.

Do you think you need to be an expert to understand a bank statement?

I think so, yes.

In March 2011 in Miami Beach at Inovita headquarters, Claudio Osorio is out,

and court -appointed attorneys take control.

We went in and told them that we are now under court order and secured the

computers, secured papers, and basically locked down the offices.

As the lawyers pour through the records, it is immediately clear that Osorio's

promising profitable company with wads of cash...

is broke.

They're unpaid creditors, probably over a million dollars unpaid bills.

Unable to make payroll, the attorneys shut down the Miami factory.

And they learned that despite the claims of factories operating around the

world, there is just one other in Dubai.

All the press of having factories in Mississippi and Oman and Angola and

Tanzania was just noise.

But there is still that $39 million in cash.

Some of the first documents we found were indications that there were

substantial sums in the bank. We found an IRS form which indicated there was

.5 million in an offshore account.

They call Osorio in for a deposition in May.

When you were operating the Inovita entities, did you typically have an

understanding on a given day approximately how much cash any of the

had? No.

You claim that he didn't understand finance, did not understand bank

Have you ever looked at a bank statement?

That's a lay person.

Do you think you need to be an expert to understand a bank statement?

I think so, yes.

The documents the attorneys find suggest the money is in the Royal Bank of

Canada in the Cayman Islands.

But Osorio knows nothing.

Did money ever get deposited into RBC Cayman?

I don't know that one way or another.

Did money ever get spent out of RBC Cayman?

Again, not my area, but we know. I don't know that one way or another.

Eventually, Osorio is asked the big question.

Do you have any reason to believe that at any time, in connection with your

involvement and relationship with the individual entities, that you ever

violated any criminal laws of any jurisdiction?

No.

And as a layperson, this is my answer, of course.

Not surprisingly, it turns out that he never had $39 million in cash.

Osorio has been working his magic again.

This was act two of what had already transpired with CHS Electronics. It was

blatant elementary school financial statement fraud, a few false phony

documents.

It was all smoke and mirrors.

And now his investors learn that Innovita never had a hope of being

It was a company that was hemorrhaging money and was being used as a personal

piggy bank by Claudio Osorio.

Carlos Boozer learns that his million -dollar investment may have gone to pay

the mortgage on Osorio's house and his country club fees.

Oh, listen, it's like being punched in the stomach 50 times in a row.

A million dollars is a lot of money.

And if it's going to get stolen from you, it could have been given to

There's a million things you could have done with it.

And the OPEC money?

Nearly two -thirds of the $3 million that was intended for the devastated

in Haiti was sent directly to Innovita investors as supposed profits.

The rest went to support Osorio's own fabulously wealthy lifestyle.

The fact that Claudio Osorio would take money from the U .S. government and

divert that money from helping the Haitian people and save Haitian lives is

of the most despicable, low things that anyone could do.

In the end, it is determined that in just three years, Osorio made off with

than $40 million.

He spent at least $8 million on himself.

And now he, Amaryllis, and their business are in bankruptcy. And the

look for money to pay back his creditors.

The Maserati?

It was leased.

The boat?

Repossessed by the bank.

One item of value they have is Amaryllis' diamond ring.

And she makes a bizarre claim to keep it. We are told that the diamond ring

actually Kubrick's zirconia and was borrowed from a friend of Amaryllis.

in Venezuela.

The story is a lie.

The diamond is real.

The ring brings in $50 ,000.

And as people quickly disassociate themselves from Osorio, more money comes

Jeb Bush returns $270 ,000 of the $460 ,000 he was paid as a consultant to

Innovita.

$50 ,000 is returned from the Democratic National Committee.

The biggest asset is, of course, the Star Island house. It is auctioned off

more than $12 million.

With a nearly $7 million mortgage to pay off, it brings in $5 million.

As 2011 comes to an end, Osorio has lost his business and his precious house.

But he is now living in an oceanfront condominium. And as he says in his

deposition, He sees a bright future.

Doing what?

Consulting.

Consulting for whom?

A company located in China.

That's a good question.

But the delusion of his next venture comes to a fast end in December when

unexpected guests arrive.

We got there bright and early in the morning. At the time he was arrested and

placed in handcuff. He, I would describe it as physically and emotionally broke

down to the point where I actually had to call EMS to the scene to make it

him before we went on.

So Mr. Osorio's world at that point crumbled.

And he has been incarcerated ever since.

His booking photo shows the dazed expression of a man who never saw it

Claudio Osorio was the Teflon Don.

Nothing stuck to him throughout the years. He could always maneuver his way

of any type of situation.

Osorio has been indicted on 23 counts of fraud and money laundering. He pleads

guilty.

It is reported that as a condition of his plea, he asks that Amaryllis receive

immunity from prosecution, and his request is granted.

He is sentenced to 12 1⁄2 years in prison and is ordered to pay more than

million in restitution.

Amaryllis has now divorced him.

When Chris Korge learns that Osorio is headed to federal prison, he realizes

money he spent in legal fees exposing Osorio was one of the best investments

has made.

You don't get many opportunities in your life to do something that may save

someone else's life.

I could see where a fraudster like this could put someone in such a...

horrendous situation, losing everything they worked for for their whole life,

because that's what almost happened to me.

And he could care less about it.

He has no conscience, no heart, no soul.

In the dead of night, he invades your house. That's all the room that he

And robs you silently while you sleep.

Blaine is one of the top burglars ever.

American Greed, next.

On the fastest growing cable network in primetime, CNBC.

The fastest growing cable network in primetime, CNBC.