NEW YORK MAN FACES FEDERAL FINANCIAL FRAUD CHARGES

NEW YORK MAN FACES FEDERAL FINANCIAL FRAUD CHARGES
On behalf of Law Office Of Scott G. Cerbin, Esq., PLLC posted in federal crimes on Friday, November 8, 2019.

A Nanuet, New York, man is facing federal charges for his alleged role in a pair of financial schemes.

The indictment, obtained by the U.S. Attorney’s Office for the Southern District of New York, charges him with securities fraud, wire fraud and structuring charges.

In the first half of the case against him, the man is alleged to have taken money from investors with the promise that he would earn for them a 20% return every 60 days by putting their funds into stocks. The investors were told their principal and interest were guaranteed.

Instead, the government said, the man told the investors that their return was coming, but instead, used their money to buy a fast-food franchise and luxury cars. He also spent some of the money gained from new investors to pay initial investors to try to keep his alleged crimes from being detected in a Ponzi-like scheme, according to the indictment.

He is alleged to have bilked more than $2 million from 100-plus investors from November 2016 through February 2019.

In the second half of the case, the man is alleged to have embezzled more than $400,000 from two hotels that employed him. Prosecutors said he took money from the hotels’ bank accounts and deposited the money into his own accounts through structured transactions.

At the time, he was employed as the director of finance for the hotels and had check-writing privileges. The indictment alleges he wrote checks payable to cash or petty cash totaling more than $400,000.

The 50-year-old man faces up to 45 years in prison if convicted of these charges. White collar crimes such as these are among the most serious charges a person can face. This man will need strong legal assistance.