RIENZI EDWARDS, Wire Fraud, New York 2022

Manhattan U.S. Attorney Preet Bharara announced the unsealing of an indictment charging six defendants with conspiracy, wire fraud, impersonation of Federal Reserve Bank of New York officials, money laundering, and other crimes in connection with a fraudulent high-yield investment scheme that resulted in the theft of over $50 million from investors in the United States and around the world.

The indictment alleges that the defendants, RIENZI EDWARDS, MICHAEL JACOBS, RUBY HANDLER-JACOBS, F.K. HO, LAWRENCE LESTER, and RACHEL GENDREAU, orchestrated and executed a fraudulent high-yield investment program known as the “Cities Upliftment Program,” or CUP, which they falsely told investors was operated by the New York Fed. The scheme, which was principally designed and operated by EDWARDS, with the assistance of JACOBS and HANDLER-JACOBS, was marketed to investors around the world through brokers, including HO, LESTER, and GENDREAU.

The defendants pitched the CUP to investors as a highly exclusive, invitation-only, public-private investment partnership designed to raise capital and generate large returns through a purported “trading program” run by the New York Fed. They promised investors that the CUP would generate extremely high returns on their investments, in some cases as much as $150 million for every $1 million invested.

HSI Special Agent in Charge Angel M. Melendez said, “Using forged and counterfeit Federal Reserve documents, these individuals allegedly orchestrated a complex international scheme that cost unwitting investors both here and abroad over $50 million dollars. This indictment shows the great length that criminals will go to steal the money of hard working individuals. HSI is up to the challenge to uncover these schemes and bring the participants to justice.”

The defendants told numerous other lies to victims to convince them to invest, including that their funds would be held in a trust account established by the New York Fed and that CUP investments were risk-free because they were “guaranteed” by the United States government. In reality, it was all a lie; there was no government-backed program and no plan to invest, only an alleged plan to steal the investors’ money.

Manhattan U.S. Attorney Preet Bharara said, “Edwards and his co-defendants allegedly concocted and carried out an audacious scam, promising investors exponential returns on investments they claimed were overseen by the New York Federal Reserve and backed by the U.S. government.”

FBI Assistant Director Deirdre L. Fike said, “The defendants in this case allegedly used complicated terminology and claimed to have international sophistication as they swindled their victims. Skilled investigators with the FBI and with the HSI will continue our joint efforts to mitigate the threat to capital markets around the world.”

The indictment alleges that the defendants used forged and counterfeit New York Fed documents to trick victims into investing millions of dollars in the CUP scheme. One of the primary ways in which the defendants tricked victims was the use of forged and counterfeit New York Fed documents. On numerous occasions, the defendants sent, or caused to be sent, investment contracts, guarantees, correspondence, and other CUP-related documents printed on what appeared to be New York Fed letterhead.

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