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Aug. 2 — An Israeli man is facing criminal charges that he defrauded investors of over $5.8 million through a purported foreign exchange trading company ( United States v. Ewiess, S.D.N.Y., No. 16-4860, 8/2/16 ).
Fadi Ewiess told investors that he would generate high returns, but instead used their money for gambling and making payments to investors, the Justice Department said Aug. 2 in the U.S. District Court for the Southern District of New York.
Through his company, Golden Bridge FX, Ewiess solicited investors, allegedly promising them that any funds traded would be guaranteed against losses by a U.S. bank. To back up his statements, Ewiess distributed forged bank documents to investors, the Justice Department said.
Ewiess and Golden Bridge also allegedly offered incentives like watches and cellular phones to to co-conspirators to bring in new accounts.
Ewiess allegedly spent over 60 percent of investors' funds on personal expenses. The remainder was used to repay earlier investors in the scheme, the Justice Department said.
If convicted, Ewiess could face up to 40 years imprisonment and a $250,000 fine.
Defense counsel is unknown at this time.
To contact the reporter on this story: Cameron Finch in Washington at email@example.com
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To view the complaint, visit: http://www.bloomberglaw.com/public/document/USA_v_Ewiess_Docket_No_116mj03040_SD_Fla_Aug_01_2016_Court_Docket.
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