FBI Exposes Financial Fraud Scheme: 6 Arrested in $50M Scam
Federal agents arrested and accused six individuals of operating a $50 million financial fraud scam. According to the FBI, the scam operators convinced investors to purchase shares of a government-backed Federal Reserve investment fund. However, the fund didn’t exist.
Undercover FBI Agents Posed as Investors
FBI agents went undercover to gather evidence against the alleged fraudsters. The undercover agents pretended to be investors while they collected emails and recording phone calls. In addition, the brokers allegedly told the agents they could earn as much as $150 million for every $1 million they put into the deal.
Authorities also say that the conspirators accused in the case forged New York Federal Reserve documents, committed money laundering and impersonated federal reserve employees. Court further documents allege that one of the accused — a broker who solicited investors – received $25,000 for her recruitment services.
Federal authorities have now frozen the financial accounts of six people accused in the scheme. Hopefully, they will recover the stolen money and redistribute it to the fraud victims. The court could sentence at least one of the accused to a maximum of 22 years in federal prison if prosecutors prove she is guilty. In addition, the other arrested persons could face the threat of similar sentences.
Victims of Financial Fraud Can Try to Get Their Money Back
Federal law protects the victims of financial fraud. If you’ve had your hard-earned money stolen in an investment scam, you have every right to try and get it back.
At the Consumer Investor Resource Center, you can speak with a financial fraud counselor completely free of charge. We will listen to your story and advise you of your legal rights and options.