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Danbury Man Jailed for Stealing $280k from Investors
Alexander Bergen, 23, of Danbury, was sentenced to 24 months of imprisonment, followed by three years of supervised release, for stealing more than $280,000 from individuals who invested in his internet business.
Bergen operated CT Wholesale, a company that sold electronic equipment and other items by buying the product for a cheaper price and then reselling those products to the customer at a higher price. He began to accept investment funds from investors who were promised a return on their investments, representing to them that he would use their funds solely to purchase products for resale.
Despite this promise, Bergen did not use the funds solely to purchase products. In 2013, he used approximately $150,000 of the investors’ money to pay for his personal credit card bills, which included personal expenses for fine dining, travel, and to shop at high-end retail stores.
Bergen received a total of more than $300,000 from approximately 10 investors. He returned less than $40,000 in funds to his investors.
Judge Vanessa L. Bryant ordered Bergen to pay restitution in the amount of $282,609.71.
Bergen pleaded guilty to one count of interstate transportation of money obtained by fraud on August 3, 2015. He has been detained since March 7, 2016, after he violated the conditions of his release pending sentencing and his bond was revoked.
The investigation was conducted by the Federal Bureau of Investigation, with the assistance of the Bethel and Greenwich Police Departments. Assistant U.S. Attorney Michael S. McGarry prosecuted the case.
Key Facts
- State: Connecticut
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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