Wenance Ceo Alejandro Muszak Arrested For Alleged Multi Million Dollar Fraud
- Wenance CEO Alejandro Muszak detained while leaving his Palermo residence
- Muszak to be questioned for alleged “Ponzi scheme” involving repeated scams
- Wenance offered high-yield dollar returns, attracting investors through a referral system
Alejandro Muszak, the embattled CEO of fintech company Wenance, was arrested Monday night as he attempted to enter his $120,000 Mercedes Benz C63S outside his Palermo home.
The executive faces charges of repeated scams and illicit association, with investigators alleging he orchestrated a “Ponzi scheme” that defrauded investors of over $1 million.
The case, handled by Federal Court No. 1 of San Isidro and prosecutor Alejandro Guevara of the Vicente López UFI, began in January when 27 investors filed complaints against the fintech, which offered above-average dollar returns. The prosecution identified at least 24 fraudulent acts, with Muszak facing additional cases in Argentina and Spain.
Investigators proved a real risk of flight, as Muszak’s entire family resides abroad. This evidence led to the issuance of a preventive detention order, executed by the Vicente López DDI. Wenance marketed itself as a fintech promising “financial freedom with the power of the people,” offering low-value, high-interest personal loans funded by investor capital.
The company attracted investors with promises of up to 12% annual returns in dollars, using a referral system to incentivize the recruitment of new participants. The funds were channeled into three trusts managed by Promotora Fiduciaria SA, whose owner, Martín Abancens, alleged that the loans from Wenance were “duplicated,” with credit portfolios being assigned multiple times.
Muszak’s reputation as a successful and reliable businessman, along with the endorsement of trusted promoters, played a crucial role in attracting investors. The fintech’s alleged “cave” for moving undeclared money, Be Capital Inversora, is also under scrutiny, with evidence suggesting Muszak’s involvement despite his previous denials.
Be Capital, registered under Roberto Cleto García, a lawyer with personal ties to Muszak, has been declared bankrupt. The offices were rented to Créditos al Río, a firm connected to the investigated companies. Muszak’s arrest comes as a relief to the numerous victims, including nearly 200 current and former Telefe employees who invested based on a colleague’s recommendation.
With Wenance’s activities shuttered in Uruguay following complaints from 600 investors who allegedly lost their entire capital, Muszak now faces a complex legal battle across multiple jurisdictions. The once-elusive executive’s detention marks a significant development in the ongoing investigations into the fintech’s alleged fraudulent practices.
