New Orleans, LA – In a stunning reversal of fortune, Michael Brian DePettrillo, once a respected attorney in New Orleans, has been sentenced to nine years in prison for violating the Commodity Exchange Act. The sentence, handed down by United States District Judge Jay C. Zainey, also includes three years of supervised release, restitution of $6,748,412.79, and a $100 court special assessment fee.
DePettrillo, 43, was found guilty of acting as an unregistered Commodity Pool Operator (CPO) and Associated Person (AP) of a CPO, embezzling client funds, and misrepresenting investments to his victims. His fraudulent activities spanned seven years and involved approximately $9.2 million in investor funds.
According to court documents, DePettrillo used various companies, including Meteor, LLC; NOLA FX Capital Management, LLC; ELC Enterprise Solutions, LLC; and Argosapolis, LLC, to misappropriate funds. He promised investors high returns on investments in the NOLA FX FUND, which was supposed to trade foreign currency pairs. Instead, DePettrillo used the money for personal expenses, including $3.7 million in ‘returns’ to prior investors, $575,000 on his own investments, and $200,000 on private air travel.
In a brazen attempt to cover up his misdeeds, DePettrillo created fictitious account statements showing trading profits from the NOLA FX FUND and NOLA FX CAPITAL. However, these statements were a lie; DePettrillo never traded with pool participant funds or achieved the returns he claimed.
The investigation and prosecution of DePettrillo’s case were handled by Assistant United States Attorneys Kathryn McHugh and Brian M. Klebba of the Financial Crimes Unit, with assistance from the Federal Bureau of Investigation (FBI). This sentence sends a clear message that financial fraud will not be tolerated in Louisiana.
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Key Facts
- State: Louisiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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