International Law

And So it Goes ...

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More Ponzi schemes

Mitchell Goldberg, 44, of Pembroke Pines, FL, pled guilty today to a three count Information charging him with fraudulent schemes totaling more than $11 million. 

At sentencing, which is set for February 20, 2009 before U.S. District Court Judge William Zloch, the defendant faces up to 12 years in prison under the terms of his plea agreement.

Goldberg was convicted of two separate conspiracies in which he helped operate companies  purported to be legitimate foreign currency option introducing brokers. 

In the first conspiracy, Goldberg helped operate companies under the names of  Emerging FX, Presidential FX, Infinity FX and Noble4X in Hollywood, FL.  Employees of the companies telephoned prospective clients and guaranteed high returns on investments, fraudulently minimized or entirely failed to disclose commissions, misled investors as to the past performance of the companies, and made other material misrepresentations and omissions of material facts. 

Nearly every client of the companies lost all or most of their investment.  Investment losses averaged about 96% of the investors' funds. The total loss to the more than 400 clients was approximately $9 million. 

In the second conspiracy, Goldberg operated companies under the names Standard FX, Superior FX, Superior 4x, and Hamilton Edwards in Coral Springs and Plantation, FL. As in the first conspiracy, employees of the companies telephoned prospective clients and promised high returns on investments if they would invest in options to purchase Euros. 

The sales teams minimized or entirely failed to disclose large up-front commissions, the companies' poor performance history,  and made other material misrepresentations and omissions of material facts. 

Most of the 75 clients suffered substantial losses on their investment, totaling approximately $2.5 million.

Losses in the second conspiracy averaged about 90% of the investors' funds. 

Goldberg was also convicted of aggravated identity theft.

Full post as published by Misleading Advertising Law on December 15, 2008 (boomark / email).