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Defendant Name, Crime, State Year
Edward Servider, a 29-year-old Staten Island man, has pleaded guilty to defrauding approximately 100 investors of over $2.4 million through his Forex trading firm, EJS Capital Management, LLC.
According to the complaint, Servider and his business partner, who remains unnamed, ran EJS from March 2013 through July 2014, during which time they employed salespeople who made unsolicited telephone calls to prospective investors.
The investors were told that their funds would be used to trade in Forex transactions, and were provided with a performance report that falsely claimed that between 2010 and 2013, EJS had achieved gross annual returns for its investors of approximately 18 percent, 22 percent, 49 percent, and 77 percent.
In truth, EJS had never conducted any trading or achieved any returns for its investors. Instead, Servider and his partner misappropriated the majority of the moneys and used it to pay their personal expenses and purported business expenses for EJS.
Servider used investor funds to purchase an engagement ring, lease a BMW vehicle for his girlfriend, and pay for hotel rooms, rental cars, and parking tickets.
Acting Manhattan U.S. Attorney Joon H. Kim praised the work of the FBI and the U.S. Commodity Futures Trading Commission for their assistance in putting a stop to the fraud.
Servider is scheduled to be sentenced on July 27, 2017, at 4:00 p.m. and faces a maximum term of five years in prison and a maximum fine of the greatest of $250,000, twice the gross gain from the offense, or twice the gross loss from the offense.
Key Facts
- State: New York
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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