(Image Credit: IMAGN) The Kentucky Sentate gavel rests on the wooden sound block in the Kentucky Senate chambers before the first day of Concurrence began at the state Capitol in Frankfort, Ky. March 13, 2025.
San Diego, California – Carlos Manuel da Silva Santos, the founder and CEO of Ethos Asset Management, Inc., was sentenced Thursday to more than seven years in prison for orchestrating a widespread advance-fee loan fraud scheme that defrauded U.S. businesses out of over $17 million. U.S. District Judge Robert S. Huie, who handed down the 87-month sentence, called Santos’ actions “reprehensible.”
A Portuguese national, Santos pleaded guilty in January 2025 to wire fraud conspiracy and aggravated identity theft. He has been in custody since his November 2023 arrest at Newark Liberty International Airport upon arriving in the United States from abroad.
Operating out of San Diego, Ethos Asset Management falsely presented itself as a global financing firm that supported business ventures in exchange for upfront fees. In reality, Santos admitted, Ethos failed to deliver on its loan promises and instead used the upfront fees for unrelated payouts—including covering prior borrowers’ fees or funding unrelated disbursements.
To further the scheme, Santos and his co-conspirators misrepresented Ethos’ financial strength, falsely claimed a history of successful loan disbursements, and altered bank and audit documents to lure investors. One key example cited in court included Santos presenting a doctored August 2021 bank statement showing Ethos held over $100 million, which it did not. In other cases, he forged an employee’s signature from a bookkeeping firm, falsely suggesting that Ethos’ 2022 annual financial statements were audited independently .
“These were not just lies—they were calculated abuses of trust,” said U.S. Attorney Adam Gordon. “Victims lost millions based on promises that were never real.”
According to the plea agreement, Ethos’ fraudulent operations spanned multiple countries, including the United States, Brazil, and Turkey. Santos admitted the scam caused at least $17,125,000 in confirmed losses to U.S.-based victims alone. Federal prosecutors plan to hold a restitution hearing to determine additional losses to other victims worldwide.
“Businesses, large or small, are the backbone of our economy,” said Shawn Gibson, special agent in charge for Homeland Security Investigations (HSI) in San Diego. “Our country relies on these businesses, and law enforcement will continue to protect them from criminals.”
Assistant U.S. Attorneys E. Christopher Beeler and Carl F. Brooker IV are prosecuting the case. Authorities urge anyone who believes Santos or Ethos Asset Management victimized them to contact HSI at [email protected].
