With Lerma's knowledge, Perusquia set up offshore trusts through PaineWebber's Channel Islands subsidiary, with Perusquia in charge.

FORBES: Ay, caramba!

Lerma first met Perusquia through Lerma's brother, Benito, in 1989, when Perusquia was working for Lehman Brothers.

FORBES: Ay, caramba!

Francisco Lerma started investing with Perusquia, who put him into American Resource Corp.

FORBES: Ay, caramba!

Only Perusquia himself knows for sure what happened, and he isn't talking.

FORBES: Ay, caramba!

Then there's the question of how Perusquia got away with sending what appear to be false account statements from a fax machine in its San Francisco office.

FORBES: Ay, caramba!

What Lerma didn't know, according to the complaint, was that Perusquia forged Lerma's signature on documents giving him the power to borrow against investments and to move money into other accounts.

FORBES: Ay, caramba!

Standing in the construction magnate's Mexico City home on Mar. 2, 1998, Lerma says, Perusquia admitted he had gambled Lerma's fortune away on shaky Canadian gold stocks and used false account statements to cover it up.

FORBES: Ay, caramba!

Perusquia declined several requests for comment.

FORBES: Ay, caramba!