The prosecutors of the U.S. charged a New York man with fraud after he reportedly gained more than $59 million by lying to investors that he could double their money in just five months, making them millionaires, via his cryptocurrency and foreign exchange trading platform.
The criminal complaint was filed in Manhattan federal court against Eddy Alexandre who promised 5% weekly returns to hundreds of investors who opened a “Robo-Advisor Assisted account” on his platform EminiFX, which had an imaginary technology he named “our trade secret.”
The 50 year old showed on EminiFX’s website that account balances of the investors were growing 5% to 9.99% every Friday. Moreover, he told investors in a meeting held on April 28 that if they invested $1,000 then “they would be a millionaire within three years,” the complaint stated.
The prosecutors claim that Alexandre did not invest a major amount of what he collected and even lost more than two-thirds of the $9 million that he had invested in stocks and stock options, but not the advertised cryptocurrency or foreign currencies. Furthermore, he diverted a minimum of $14.7 million into his own bank account.
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The fraud began last September and Alexandre has bought a lot of expensive items for himself including a $155,000 BMW, real estate and much more.
Alexandre was arrested on Thursday and is charged with commodities fraud and wire fraud, which have maximum prison terms of 10 years and 20 years respectively.
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