Damian Williams, america Lawyer for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Cost of the New York Area Workplace of the Federal Bureau of Investigation, introduced right now the unsealing of a Grievance in Manhattan federal court docket 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 lots of of particular person traders after making false representations in reference to the EminiFX buying and selling platform.  ALEXANDRE was arrested this morning and shall be offered later right now earlier than Justice of the Peace Choose Katharine H. Parker within the U.S. District Courtroom for the Southern District of New York.

U.S. Lawyer Damian Williams stated:  “Eddy Alexandre allegedly induced his shoppers to take a position over $59 million with guarantees of big passive earnings returns by way of 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 international exchanges provide excessive return potential, however traders 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 thousands and thousands of {dollars} from unwitting traders to whom he ‘assured’ weekly returns of 5% by means of 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 important parts of the investor funds he solicited to purchase costly luxuries for himself.  Immediately’s motion once more demonstrates the FBI’s dedication to pursuing fraudsters like Mr. Alexandre and guaranteeing they face the results of their actions within the federal prison justice system.”

As alleged within the Grievance unsealed right now in Manhattan federal court docket[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 lots of of particular person traders. ALEXANDRE marketed EminiFX as an funding platform by means of which traders would earn passive earnings by means of automated investments in cryptocurrency and international change (“FOREX”) buying and selling. ALEXANDRE provided his traders “assured” excessive funding returns utilizing new expertise that he claimed was secret. Particularly, ALEXANDRE falsely represented to traders that they might 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 traders what the expertise was. Every week EminiFX’s web site falsely represented to traders that they’d earned at the least 5% on their funding, which they may withdraw or re-invest.

In reality and actually, and as ALEXANDRE nicely knew, EminiFX didn’t earn 5% weekly returns for its traders. 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 traders. As an alternative of utilizing traders’ funds as he had promised, ALEXANDRE misdirected at the least roughly $14,700,000 to his private checking account and failed to take a position the overwhelming majority of the traders’ funds. For instance, ALEXANDRE used $155,000 in investor funds to buy a BMW automotive for himself and spent a further $13,000 of investor funds on automotive 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 shall 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 Pressure.  Assistant United States Attorneys Nicholas Folly and Jared Lenow are accountable for the prosecution.

 


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

 



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