Press Release
PEMBROKE PINES MAN PLEADS GUILTY TO MASSIVE FRAUDULENT SCHEMES
December 10, 2008
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, Michael Fithen, Special Agent in Charge, United States Secret Service, Miami Field Office, Duncan Foster, Chief of Police, Coral Springs Police Department, and Sheriff Al Lamberti, Broward County Sheriff’s Office, announced that defendant 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.
Mr. Acosta commended the investigative efforts of the Federal Bureau of Investigation, the United States Secret Service, the Coral Springs Police Department, and the Broward Sheriff’s Office for investigating this case. The case is being handled by Assistant U.S. Attorneys Steve Petri and Harry Wallace.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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