NEW ORLEANS, LA (February 19, 2025) – Michael Brian Depetrillo, a 43-year-old New Orleans resident, pleaded guilty on February 18, 2025, to violating the Commodity Exchange Act, admitting to a multi-million dollar investment fraud scheme that spanned seven years and defrauded at least 55 investors. Acting U.S. Attorney Michael M. Simpson announced the guilty plea, marking a significant step in holding Depetrillo accountable for his elaborate deception. Depetrillo faces a potential sentence of up to 10 years in prison and substantial financial penalties.
The Mechanics of the Fraud: Unregistered Operations and False Promises
According to court documents, Depetrillo operated a sophisticated scheme by misrepresenting himself and his companies as legitimate investment vehicles. He was not properly registered as a Commodity Pool Operator (CPO) or an Associated Person (AP) of a CPO with the United States Commodity Futures Trading Commission (CFTC), a fundamental violation of federal law.
Depetrillo used a network of companies, including Meteor, LLC; NOLA FX Capital Management, LLC; ELC Enterprise Solutions, LLC; and Argosapolis, LLC, to project an image of legitimacy. He lured investors with promises of high returns through pooled investments in the “NOLA FX FUND.” This fund, Depetrillo claimed, would be used to trade foreign currency pairs (retail forex) on a leveraged basis, a strategy that can potentially yield high profits but also carries significant risk.
The Allure of High Returns and the Reality of Misappropriation
Depetrillo’s sales pitch centered on the purported benefits of pooling investor funds. He told investors that their money would be combined for greater trading power and, consequently, higher returns. He further solidified this illusion by claiming that either METEOR or NOLA FX CAPITAL managed the NOLA FX FUND. In at least one instance, he even identified “NOLA FX Capital” itself as the investment vehicle, further blurring the lines and adding to the confusion.
The promised investments weren’t limited to forex. Depetrillo boasted of trading in gold futures options, stocks, and even cryptocurrency, diversifying the supposed portfolio to attract a wider range of investors. This diversification, however, was entirely fictitious.
Instead of investing the funds as promised, Depetrillo misappropriated the money. The court documents reveal a shocking breakdown of how the stolen funds were used:
- Ponzi-like Payments: Approximately $3.7 million was used to pay “returns” to earlier investors. This classic Ponzi scheme tactic creates a false sense of success and encourages further investment.
- Personal Investments: Around $575,000 was funneled into Depetrillo’s own personal investments, demonstrating a clear intent to enrich himself.
- Extravagant Lifestyle: The remaining funds were used to support a lavish lifestyle, including:
- $425,000 on rent.
- $200,000 on private air travel.
- $300,000 on online gambling.
- Other unspecified personal expenses.
Concealing the Truth: Fabricated Statements and Commingled Funds
To maintain the illusion of profitability and prevent investors from discovering the fraud, Depetrillo engaged in deliberate acts of concealment. He created and distributed fictitious account statements under the names NOLA FX FUND and NOLA FX CAPITAL. These statements falsely claimed that Depetrillo had been actively trading forex with the pooled funds and that these trades were generating significant returns.
In reality, Depetrillo never deposited the investors’ money into trading accounts belonging to NOLA FX FUND or NOLA FX CAPITAL. The impressive returns shown on the statements were entirely fabricated. This act of creating false documentation is a key element of the fraud and a serious violation of the law.
Furthermore, Depetrillo failed to comply with regulations governing forex pools. He did not receive funds in the name of the pool and commingled investor funds with his own, making it difficult to track the money and further obscuring his illicit activities. This commingling is a significant red flag for any investment operation.
The Scale of the Deception: $9.2 Million and 55 Victims
Over a seven-year period, Depetrillo managed to defraud approximately 55 investors, taking in a staggering $9.2 million. This figure highlights the scale and longevity of the scheme, demonstrating Depetrillo’s ability to deceive a significant number of people over an extended period. The long duration also suggests a sophisticated and well-organized operation.
Sentencing and the Search for More Victims
Michael Depetrillo’s sentencing is scheduled for May 25, 2025, before United States District Judge Jay C. Zainey. He faces a severe penalty:
- Up to 10 years of imprisonment.
- Up to 3 years of supervised release.
- A fine of up to $1,000,000.00.
- Repayment of all proceeds obtained from the fraud.
- A mandatory $100 special assessment fee.
The potential for a decade in prison and the requirement to repay the stolen funds underscore the seriousness of the charges.
The Federal Bureau of Investigation (FBI) is actively investigating the case and believes there may be additional victims who have not yet come forward. The FBI has set up a dedicated website, http://fbi.gov/depetrillovictims, where individuals can report information related to Depetrillo’s fraudulent scheme. The FBI encourages anyone who believes they may have been a victim to provide information.
The Prosecution Team and Contact Information
The prosecution of this case is being handled by Assistant United States Attorneys Kathryn McHugh of the Financial Crimes Unit and Brian M. Klebba, Chief of the Financial Crimes Unit. This indicates the specialized nature of the case and the resources being dedicated to achieving justice.
For further information, the public can contact:
Shane M. Jones Public Information Officer United States Attorney’s Office, Eastern District of Louisiana United States Department of Justice
Protecting Yourself from Investment Fraud: Key Red Flags
This case serves as a stark reminder of the dangers of investment fraud. While no investment is entirely risk-free, there are several red flags that potential investors should be aware of:
- Unrealistic Returns: Promises of exceptionally high returns with little or no risk are a major warning sign. If it sounds too good to be true, it probably is.
- Unregistered Individuals or Companies: Always verify the registration status of any individual or company offering investment opportunities. Check with the CFTC and other relevant regulatory bodies.
- Pressure Tactics: Be wary of high-pressure sales tactics urging you to invest quickly. Legitimate investment professionals will give you time to make informed decisions.
- Lack of Transparency: Avoid investments where the underlying strategy or holdings are unclear or overly complex. You should be able to understand how your money is being invested.
- Commingling of Funds: Ensure that your investment funds are kept separate from the personal funds of the advisor or company.
- Difficulty Withdrawing Funds: Be cautious if you encounter difficulties or delays when attempting to withdraw your funds.
- Guaranteed returns: Investment always mean risk, any offering guaranteeing a return is lying.
By being vigilant and conducting thorough due diligence, investors can significantly reduce their risk of becoming victims of fraud.
