Wednesday, March 24, 2010

Former New York Foreign Exchange Trader Sentenced In $110 Million Ponzi Scheme

Michael Richard MacCaull, 38, of Northport, New York, a former foreign exchange trader, was sentenced to 188 months (15 1/2+ years) in prison for operating a Ponzi-type investment fraud scheme that bilked 272 investors out of some $110 million over an 7 year period. MacCaull and a co-defendant, Bradley David Eisner, 37, of Long Island, plead guilty in 2008 and have forfeited $28 million in assets. The court ordered MacCaull to pay additional restitution of $66 million. MacCaull and Eisner are alleged to have enticed investors through their company, Razor FX, Inc., claiming they were experts at foreign exchange trading. However, almost no trading occurred and investment funds went to pay returns to earlier investors and to maintain their opulent lifestyle. MacCaull was convicted in connection with an earlier investment fraud scheme involving Sterling Foster & Co., a now defunct New York boiler-room operation that manipulated stock prices. In 2002, MacCaull was sentenced to 15 months in prison.

Read the story here, here and here.

Read the original DOJ announcement here.

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