Joseph Micelli, Investment Fraud, Nevada 2016

In a shocking turn of events, a Las Vegas man has admitted to his role in a massive international investment fraud scheme, costing victims over $5 million.

Joseph Micelli, 62, pleaded guilty to conspiracy to commit wire fraud and securities fraud before U.S. District Judge Kent J. Dawson of the District of Nevada on February 23, 2016.

According to court documents, Micelli conspired with others in the United States and Switzerland to promote fraudulent investments and loan instruments, claiming that a Swiss company known as the Malom Group A.G. would provide access to lucrative opportunities and substantial cash loans, requiring an up-front payment from victims.

As part of his plea, Micelli admitted that he had lost his license to practice law, but held himself out to investors as an attorney. He also submitted a sworn affidavit to the U.S. Bankruptcy Court for the District of New Hampshire, containing false statements about the Malom Group’s ability to provide financing to debtors.

The FBI’s Las Vegas Field Office investigated the case, with Assistant Chief Brian R. Young and Trial Attorneys Melissa Aoyagi and Anna G. Kaminska of the Criminal Division’s Fraud Section prosecuting the case with assistance from the U.S. Attorney’s Office for the District of Nevada.

The U.S. Securities and Exchange Commission’s Enforcement Division, which referred the matter to the authorities and is conducting a parallel civil enforcement investigation, also provided valuable assistance in the case.

This conviction is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force, which was created in November 2009 to combat financial crimes. Since its formation, the task force has made significant strides in investigating and prosecuting financial crimes, enhancing coordination and cooperation among federal, state, and local authorities, and conducting outreach to the public and victims.

In this case, the task force has filed over 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants, over the past three fiscal years.

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