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Fadi Ewiess, 38, Arrested for Operating $5.8M FOREX Ponzi Scheme in New York
Fadi Ewiess, a 38-year-old Israeli man, has been charged with operating a FOREX Ponzi scheme in New York, 2016. According to the complaint, Ewiess, also known as ‘Fadi Awise,’ allegedly raised over $5.8 million from investors by promising high rates of return and guaranteeing their capital with third-party financial institutions.
Instead of using investor money for foreign exchange transactions, Ewiess spent the funds on personal expenses, including gambling and travel. The scheme, which operated from 2015 to 2016, also involved Ewiess paying returns to investors to keep them invested and referring additional money to the scheme.
U.S. Attorney Preet Bharara said, ‘As alleged, Fadi Ewiess lied to prospective investors about his company’s expertise in the foreign exchange markets and sent them forged ‘guarantees’ from New York banks to lure them into investing with him.’
FBI Assistant Director-in-Charge Diego Rodriguez added, ‘As alleged, Ewiess ran a multimillion-dollar Ponzi scheme under the guise of a foreign exchange trading company. Instead of using investor money for foreign exchanges, Ewiess traveled and gambled the money away or paid investors to continue to invest in his scheme.’
Ewiess faces one count of conspiring to commit wire fraud and one count of wire fraud, each carrying a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.
The scheme, which operated from 2015 to 2016, involved Ewiess and others raising more than $5.8 million from investors in Saudi Arabia and other countries. Ewiess, who was arrested in Fort Lauderdale, Florida, is expected to appear in Manhattan federal court.
Ewiess’ scheme is a stark reminder of the dangers of unregulated FOREX trading and the importance of conducting thorough research before investing in any company or scheme.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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