Home USA News Two men plead guilty to a $30 million foreign exchange fraud scheme ...

Two men plead guilty to a $30 million foreign exchange fraud scheme – Press Releases

A Massachusetts man and Florida man pleaded guilty today to their role in running a forex trading scheme to steal $30 million from their investor victims.

According to court documents, Patrick Gallagher, 44, of Middleborough, Massachusetts, and Michael Dion, 49, of Orlando, Fla., devised a plan in which they would encourage victims to invest in their foreign exchange firm, Global Forex Management, by making them a promise great returns based on past trading results they fabricated. They informed the victims that their funds were traded through an online trading platform provided by a co-conspirator’s firm, IB Capital. Instead, Gallagher and Dion worked with other co-conspirators in the Netherlands to steal victim investors’ money. In May 2012, Gallagher and Dion carried out their plan by deliberately creating losing deals for investors and effectively stealing $30 million from their victims. After Gallagher and Dion fabricated the massive trade loss, they funneled the stolen money through shell companies they had set up around the world.

Gallagher and Dion each pleaded guilty to one charge of conspiracy to commit securities fraud, and each faces a maximum sentence of five years in prison. A federal district court judge will determine the sentence after considering US sentencing guidelines and other legal factors.

This was announced by Assistant Attorney General Kenneth A. Polite, Jr. of the Department of Justice’s Criminal Division and Acting Inspector Delany De Leon-Colon of the US Postal Inspection Service (USPIS) Criminal Investigation Division.

The USPIS is investigating the case.

Trial Attorneys Brittain Shaw, Vasanth Sridharan and Tian Huang from the Criminal Division’s Fraud Division are prosecuting the case.

The Fraud Division uses the Victim Notification System (VNS) to provide victims with case information and case updates. Individuals or organizations who believe that they are a…

News Source from link



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments