Eric Malley, Securities Fraud, New York 2023
New Canaan Man Charged with Securities Fraud
Grimy Times has learned that Eric Malley, the founder and former chief executive officer of MG Capital Management L.P., was arrested this morning in New Canaan, Connecticut, on charges of securities fraud and wire fraud.
According to the United States Attorney for the Southern District of New York, Audrey Strauss, Malley allegedly fraudulently induced hundreds of individuals to invest over $50 million in two real estate investment funds.
Malley, 56, is accused of lying about his own prior experience and investment track record, as well as the nature and characteristics of the funds.
Investors in the funds, many of whom invested their retirement savings, lost all or almost all of their investments.
The funds, MG Capital Management Residential Fund III and MG Capital Management Residential Fund IV, were not debt-free as Malley claimed, but instead held mortgaged properties.
The investigation was conducted by the Federal Bureau of Investigation.
Malley will be presented before a magistrate judge in the Southern District of New York.
This is a developing story, and we will provide updates as more information becomes available.
Mandatory Facts:
Defendant: Eric Malley
Criminal Charges: Securities Fraud and Wire Fraud
City and State: New Canaan, Connecticut
Exact Date: 05/26/2023
Sentence or Outcome: Currently in custody
Dollar Amounts: $50 million, $23 million, $3 million, $278,000
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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