Investment fund managers Enrico Carini, alias ‘Ed,’ and Caner Otar, alias ‘John,’ have both pleaded guilty to pre-IPO fraud schemes, according to federal court documents. Carini faced up to 10 years in prison for conspiracy to commit securities fraud and investment adviser fraud. Co-defendant Otar also pleaded guilty to the same charge on August 25, 2025. Both were leaders at Max Infinity Management LLC, Elder Fund Management LLC, and other related funds. The duo is accused of diverting over $60 million from investors into personal finances through misleading promises and high-pressure sales tactics.
Joseph Nocella, Jr., U.S. Attorney for the Eastern District of New York, emphasized the importance of protecting investors from such fraudulent schemes. FBI Assistant Director in Charge Christopher G. Raia highlighted the FBI’s commitment to preserving economic integrity. Carini and Otar falsely represented that Max Infinity was registered with the SEC and possessed a successful track record in IPO deals.
The scheme involved misrepresentations about investment profits, including false claims that they did not earn commissions until investors profited, which was contradicted by evidence of their receipt of commissions on each solicited investment. The duo also falsely assured investors of Max Infinity’s impressive history with prior IPO deals.
Charges against Carini and Otar’s co-defendants are pending. Their trial is scheduled for January 12, 2026, with all defendants presumed innocent until proven guilty. The prosecution is led by Assistant U.S. Attorneys Sarah M. Evans, Eric Silverberg, Lorena Michelen, and Nicholas M. Axelrod.
Enrico Carini, 40, from Staten Island, New York, and Caner Otar, 33, were key figures in the fraudulent scheme. The investigation was assisted by the Securities and Exchange Commission (SEC).
Carini and Otar’s guilty pleas underscore the severity of their actions and the consequences they now face. The court will determine final sentences at a later date.
Related Federal Cases
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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