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Eddy Alexandre, a resident of Valley Stream, New York, has been sentenced to nine years in prison for his involvement in commodities fraud. He was convicted of defrauding over 25,000 investors out of $248 million through his cryptocurrency trading platform, EminiFX.
The investigation revealed that Alexandre utilized a portion of the funds to acquire extravagant items for himself, including high-end vehicles.
The ‘Brazen’ Fraud
The US Department of Justice (DOJ) disclosed Alexandre’s sentence on its official website, providing a detailed account of his offenses.
He operated the questionable crypto investment platform EminiFX from September 2021 to May 2022, promising clients “guaranteed” high returns on investments through proprietary technology. This feature, termed his “trade secret,” assured customers that they would see their money doubled within five months.
To create an illusion of legitimacy, EminiFX’s website falsely reported weekly returns on investments to users. In reality, Alexandre invested only a fraction of the funds entrusted to him and kept the remainder for himself. He also incurred millions in losses on the cryptocurrency funds he managed, a fact he never disclosed to his victims.
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The DOJ asserted that he diverted at least $14,700,000 to his personal bank account and purchased a BMW for himself costing $155,000.
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Damian Williams, the United States Attorney for the Southern District of New York, characterized Alexandre’s fraud as “brazen,” noting that it involved “fabricating weekly investment returns of at least 5% out of thin air.”
“Most egregiously, Alexandre recruited many of his investors by exploiting his position of trust within his church and the Haitian community, even going so far as to enlist members of the church to help recruit EminiFX investors. As today’s sentence demonstrates, cryptocurrency executives who lie and cheat their customers will be held to account for their crimes,” he added.
In addition to the nine-year prison term, Alexandre received three years of supervised release and was ordered to forfeit $248 million and pay $213 million in restitution.
The Father-Son Duo That Face 20 Years in Prison
Numerous instances of fraud have emerged in recent years, where wrongdoers have deceived crypto investors to steal their funds and support a lavish lifestyle.
This includes Brandon Austin and his father, Eugene “Hugh” Austin, who were apprehended earlier this year on charges of having “victimized both sophisticated and novice cryptocurrency investors alike out of millions.”
Like Alexandre, the duo encouraged individuals to invest in cryptocurrencies through them by promising substantial returns. Instead, they misappropriated all the funds for personal gain. Officials reported that they stayed in luxury hotels, purchased expensive vehicles, and dined at high-end restaurants with the $10 million taken from investors.
The accused now face up to 20 years in prison on charges including money laundering and wire fraud. Brandon has already pleaded guilty, agreeing to forfeit $3.4 million and pay $2 million in restitution. The court is expected to announce his sentence on September 6.
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