All language subtitles for American Greed s09e07 Charity Begins At Home

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.

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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.