Eduardo Galan, a 65-year-old investment advisor from Brockport, NY, has been sentenced to three years in prison for his role in a massive Ponzi scheme that left 18 investors with significant financial losses. Galan, who owned and controlled S&G Unlimited Services, a financial services business in Brockport, promised investors that their money would be used to broker private mortgage transactions.
However, Galan used the money to repay earlier investors and cover personal and business expenses. The scheme, which ran from January 2008 to March 2013, resulted in Galan defrauding investors out of $821,912. Further investigation revealed that Galan owed other clients money, bringing the total amount owed to $1,098,567.26.
Galan, a registered securities broker until October 2008, was barred from the industry at that time. The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation and Special Agents of the Internal Revenue Service, Criminal Investigation Division.
According to Assistant U.S. Attorney John J. Field, who handled the case, Galan’s actions were a clear violation of the trust placed in him by his clients. Field stated, “Galan engaged in a brazen Ponzi scheme, using his position as a registered securities broker to defraud innocent investors.”
The sentencing hearing was held before U.S. District Judge Frank P. Geraci, who ordered Galan to pay $1,100,000 in restitution to the victims of the fraud. Galan’s sentence is a significant blow to those who thought they could get away with such egregious crimes.
Grimy Times has learned that the investigation into Galan’s activities is ongoing, and authorities are working to recover the remaining funds owed to clients. In the meantime, the people of Brockport and beyond can rest a little easier knowing that justice has been served.
Related Federal Cases
- Miles Burton Marshall, 30-Year Ponzi Scheme, New York, 2023 · New York
- Ex-Chairman John Smith, Ran $250M Securities Fraud Scheme, New York… · Florida
- Letitia James, Predatory Lending Scheme, New York NY, 2023 · Washington
- John Quadrino, Multi-Million-Dollar Ponzi Scheme, NY 2024 · Illinois
- David Menzies, Tax Refund Inflation Scheme, New York 2024 · Pennsylvania
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime