individual who presented himself as an experienced stock trader pleads guilty to defrauding an investor | USAO-EDNY
Earlier today, at the Brooklyn Federal Courthouse, Gonzalo Ortiz pleaded guilty to investment advisor fraud in a scheme to defraud an investor of nearly $ 600,000 by making false statements about his expertise in trading and profitability of various investments. The proceedings took place before US District Judge William F. Kuntz, II.
Breon Peace, United States attorney for the Eastern District of New York, and Michael J. Driscoll, deputy director in charge of the Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
âOrtiz posed as an experienced stock trader who could dramatically increase the victim’s savings, but instead he stole almost a quarter of a million dollars of the victim’s money for the ‘use for personal benefit,’ US Attorney Peace said. “This office will continue to prosecute and hold accountable those who engage in fraud and steal hard-earned money from investors.” Mr. Peace thanked the United States Securities and Exchange Commission, New York regional office, for their assistance in this matter.
“Ortiz distorted his victim’s ability to invest funds profitably, not only causing a significant loss in value, but also reserving a good chunk of the money for his own benefit,” said the deputy director in charge of FBI, Driscoll. . âInvestment fraud schemes are all too common, often causing emotional trauma to those involved. Our office is committed to investigating this type of criminal activity and holding those responsible for it. “
Between approximately April 2015 and May 2017, Ortiz falsely presented himself to an investor (the âVictimâ) as a successful investment advisor who had made profits for other people by trading stocks on their behalf. Ortiz convinced the victim to allow him to invest the victim’s money, promising significant returns. Based on these false statements, the victim made successive investments with Ortiz over a period of several years. During this time, Ortiz falsely told the victim that the investments were profitable and sent the victim a fake account statement to support these claims. In reality, Ortiz made some bad business decisions which resulted in the loss of some of the victim’s money, and also stole some of the victim’s money for himself, siphoning off some of the investments. to pay for personal expenses, including clothing, food, and car payments. . Ortiz controlled nearly $ 600,000 of the victim’s money, stole around $ 224,500 for himself, and lost a significant portion of the victim’s money through unprofitable transactions.
The case is being handled by the Office’s Corporate and Securities Fraud Section. Assistant United States Attorney Andrew D. Grubin is in charge of the prosecution.
Hackensack, New Jersey
EDNY File # 19-CR-161 (WFK)