Investment Fraud: EDWARD J. SERVIDER Pled Guilty to Defrauding Approximately 100 Investors

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EDWARD J. SERVIDER Pled Guilty to Defrauding Approximately 100 Investors

<h2>Staten Island Man Pleads Guilty In Manhattan Federal Court To Defrauding Investors Of Over &dollar;2 Million<&sol;h2>&NewLine;<p>Joon H&period; Kim&comma; the Acting United States Attorney for the Southern District of New York&comma; announced today that EDWARD J&period; SERVIDER&comma; a&sol;k&sol;a &OpenCurlyDoubleQuote;Nick Halden&comma;” pled guilty to defrauding approximately 100 investors of over &dollar;2&period;4 million through his firm EJS Capital Management&comma; LLC&period; SERVIDER pled guilty to one count of conspiracy to commit commodities fraud before U&period;S&period; District Judge Jed S&period; Rakoff&period;<&sol;p>&NewLine;<p>Acting Manhattan U&period;S&period; Attorney Joon H&period; Kim said&colon; &OpenCurlyDoubleQuote;Edward Servider lured investors into his scheme by falsely telling them he had achieved high annual rates of return through his Forex trading&period; In fact&comma; he never made a single trade or achieved any returns for any of his nearly 100 investor-clients&period; Instead&comma; he used his investors’ money to pay for personal luxuries like hotels&comma; cars&comma; and an engagement ring&period; I want to thank the FBI for their great work in putting a stop to this fraud&period;”<&sol;p>&NewLine;<p>According to allegations contained in the Complaint and the Indictment filed against SERVIDER and statements made in related court filings and proceedings&colon;<&sol;p>&NewLine;<p>In March 2013&comma; SERVIDER set up a retail foreign currency exchange &lpar;&OpenCurlyDoubleQuote;Forex”&rpar; trading firm&comma; called EJS Capital Management&comma; LLC &lpar;&OpenCurlyDoubleQuote;EJS”&rpar;&comma; in Brooklyn&period; SERVIDER and his business partner &lpar;&OpenCurlyDoubleQuote;CC-1”&rpar; ran EJS from March 2013 through July 2014&period; EJS employed salespeople &lpar;&OpenCurlyDoubleQuote;cold callers”&rpar; who made unsolicited telephone calls to prospective investors&period; SERVIDER and the EJS cold callers told prospective investors that their funds would be used to trade in Forex transactions&comma; and provided them with a &OpenCurlyDoubleQuote;performance report” that falsely claimed that between 2010 and 2013&comma; EJS had achieved gross annual returns for its investors of approximately 18 percent&comma; 22 percent&comma; 49 percent&comma; and 77 percent &lpar;the &OpenCurlyDoubleQuote;EJS Performance Report”&rpar;&period; In truth&comma; EJS had never conducted any trading or achieved any returns for its investors&period; To sustain the fraud&comma; SERVIDER directed EJS employees to send account statements to the EJS investors&comma; falsely showing positive returns on their investments&period;<&sol;p>&NewLine;<p>In fact&comma; instead of using the investor funds to execute Forex trading&comma; the majority of the moneys was misappropriated and used to pay SERVIDER and CC-1’s personal expenses and purported business expenses for EJS&period; For example&comma; SERVIDER used investor funds to purchase an engagement ring&comma; to lease a BMW vehicle for his girlfriend&comma; and to pay for hotel rooms&comma; rental cars&comma; and parking tickets&period;<&sol;p>&NewLine;<hr &sol;>&NewLine;<p>SERVIDER&comma; 29&comma; pled guilty to one count of conspiracy to commit commodities fraud&comma; which carries a maximum term of five years in prison and a maximum fine of the greatest of &dollar;250&comma;000&comma; twice the gross gain from the offense&comma; or twice the gross loss from the offense&period; The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only&comma; as any sentencing of the defendant will be determined by the judge&period;<&sol;p>&NewLine;<p>SERVIDER’s sentencing is scheduled for July 27&comma; 2017&comma; at 4&colon;00 p&period;m&period;<&sol;p>&NewLine;<p>Mr&period; Kim praised the work of the FBI&comma; and thanked the U&period;S&period; Commodity Futures Trading Commission for its assistance&period;<&sol;p>&NewLine;<p>This case is being handled by the Office’s Securities and Commodities Fraud Task Force&period; Assistant U&period;S&period; Attorney Christine I&period; Magdo is in charge of the prosecution&period;<&sol;p>&NewLine;<p><a href&equals;"https&colon;&sol;&sol;www&period;justice&period;gov&sol;usao-sdny&sol;pr&sol;staten-island-man-pleads-guilty-manhattan-federal-court-defrauding-investors-over-2">Original PressReleases&&num;8230&semi;<&sol;a><&sol;p>&NewLine;

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