Home Bitcoin News BitCoin Forex CEO Of Cryptocurrency And Foreign exchange Buying and selling Platform Charged With Fraudulent Scheme Involving Over $59 Million – Division of Justice

CEO Of Cryptocurrency And Foreign exchange Buying and selling Platform Charged With Fraudulent Scheme Involving Over $59 Million – Division of Justice

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Damian Williams, the US Legal professional for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Cost of the New York Discipline Workplace of the Federal Bureau of Investigation, introduced right now the unsealing of a Criticism in Manhattan federal courtroom charging EDDY ALEXANDRE, the chief of a purported cryptocurrency and foreign currency trading platform known as EminiFX, with commodities fraud and wire fraud offenses.  As alleged, ALEXANDRE solicited greater than $59 million in investments from a whole lot of particular person buyers after making false representations in reference to the EminiFX buying and selling platform.  ALEXANDRE was arrested this morning and might be offered later right now earlier than Justice of the Peace Decide Katharine H. Parker within the U.S. District Courtroom for the Southern District of New York.

U.S. Legal professional Damian Williams stated:  “Eddy Alexandre allegedly induced his shoppers to speculate over $59 million with guarantees of big passive revenue returns through his personal proprietary buying and selling platform known as EminiFx. In actuality, no such expertise existed, as Alexandre is alleged to have invested little or no of their cash – most of which he misplaced – and transferred most of it to his personal private accounts to pay for luxurious objects for himself.  As in any of the monetary markets, the overseas exchanges provide excessive return potential, however buyers ought to watch out for the draw back dangers of false claims and get wealthy fast schemes that oftentimes are too good to be true.” 

FBI Assistant Director-in-Cost Michael J. Driscoll stated:  “As alleged, Mr. Alexandre solicited tens of millions of {dollars} from unwitting buyers to whom he ‘assured’ weekly returns of 5% by his buying and selling platform utilizing a brand new expertise he refused to reveal.  As with many grasping actors who’ve preceded him, he then used vital parts of the investor funds he solicited to purchase costly luxuries for himself.  At the moment’s motion once more demonstrates the FBI’s dedication to pursuing fraudsters like Mr. Alexandre and guaranteeing they face the implications of their actions within the federal legal justice system.”

As alleged within the Criticism unsealed right now in Manhattan federal courtroom[1]:

From in or about September 2021, as much as and together with in or about Might 2022, ALEXANDRE, operated EminiFX, Inc. (“EminiFX”), a purported funding platform that ALEXANDRE based, and for which he solicited greater than $59 million in investments from a whole lot of particular person buyers. ALEXANDRE marketed EminiFX as an funding platform by which buyers would earn passive revenue by automated investments in cryptocurrency and overseas trade (“FOREX”) buying and selling. ALEXANDRE provided his buyers “assured” excessive funding returns utilizing new expertise that he claimed was secret. Particularly, ALEXANDRE falsely represented to buyers that they’d double their cash inside 5 months of investing by incomes a 5% weekly return on their funding utilizing a “Robo-Advisor Assisted account” to conduct buying and selling. ALEXANDRE referred to this expertise as his “commerce secret” and refused to inform buyers what the expertise was. Every week EminiFX’s web site falsely represented to buyers that they’d earned a minimum of 5% on their funding, which they may withdraw or re-invest.

In reality and in reality, and as ALEXANDRE effectively knew, EminiFX didn’t earn 5% weekly returns for its buyers. ALEXANDRE didn’t even make investments the overwhelming majority of investor funds entrusted to him, and ALEXANDRE sustained over $6 million in losses on the restricted portion of funds that he did make investments, which he didn’t speak in confidence to his buyers. As an alternative of utilizing buyers’ funds as he had promised, ALEXANDRE misdirected a minimum of roughly $14,700,000 to his private checking account and failed to speculate the overwhelming majority of the buyers’ funds. For instance, ALEXANDRE used $155,000 in investor funds to buy a BMW automobile for himself and spent a further $13,000 of investor funds on automobile funds, together with to Mercedes Benz. 

*                *                *

ALEXANDRE, 50, of Valley Stream, New York, is charged with one depend of commodities fraud, which carries a most sentence of 10 years in jail, and one depend of wire fraud, which carries a most sentence of 20 years in jail. 

The utmost potential sentences are prescribed by Congress and are supplied right here for informational functions solely, as any sentencing of the defendant might be decided by a decide.

Mr. Williams praised the investigative work of the Federal Bureau of Investigation and likewise thanked the Commodity Futures Buying and selling Fee for its help.

This case is being dealt with by the Workplace’s Securities and Commodities Fraud Process Power.  Assistant United States Attorneys Nicholas Folly and Jared Lenow are answerable for the prosecution.

 


[1] Because the introductory phrase signifies, the whole thing of the textual content of the Criticism, and the outline of the Criticism set forth herein, represent solely allegations, and each truth described must be handled as an allegation.

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