Seven individuals connected to Generation Zoe's money laundering operations were arrested in Rosario, Argentina, on October 22nd. Maximiliano Aguirre Bosc, Francisco Ferri, Marcos Medinelli, Juan Cruz Robledo, Diego Cadel, Federico Fernández Verdegna, and Lucas Iglesias faced charges following the arrests.
Authorities brought the seven men to court, then released them on bail. A condition of their release prohibits them from leaving Argentina. These arrests bring the total number of suspects in the Rosario investigation to eleven, adding to four others apprehended last year.
Economic Crime Prosecutor Mariano Rios Artacho detailed the money laundering structure, according to Rosario Plus. The operation channeled funds through a network of shell companies. Generación Zoe SA, Zoe Empowerment, Al Coaches SASA, Zoe Construcciones, Universidad del Trading SA, and Zoe Cash all played roles in the illicit financial flows.
On paper, the setup appeared legitimate. It offered coaching courses, financial advice, and investment management services. Leonardo Cositorto coordinated these activities, using a persuasive pitch to convince victims to hand over their money. Prosecutors maintain the entire structure was a fraud scheme from its inception, designed to defraud investors.
Over thirty complaints from victims in Rosario prompted the charges against the group. The scheme reportedly defrauded thousands of investors across several Latin American countries.
Generation Zoe operated as a multi-level marketing (MLM) cycler Ponzi scheme. It promised substantial returns to investors who recruited new participants. Funds from new recruits paid off earlier investors, a common feature of such fraudulent ventures. Leonardo Cositorto created and ran the scheme until law enforcement intervened.
Cositorto himself was arrested in the Dominican Republic in April 2022. Argentina extradited him shortly after his capture. He remains incarcerated, awaiting the progression of his criminal case. In July 2022, a court denied his request for bail.
Arrests in the Generation Zoe case have continued beyond Cositorto. Giovanni Caroglio was apprehended in Mendoza on July 7th. Gustavo Saavedra, who previously served as Generation Zoe's lawyer, pled guilty in June and received a four-year prison sentence.