Press Release
TWO PLEAD GUILTY IN FOREIGN CURRENCY INVESTMENT SCHEME
October 7, 2008
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, Michael E. Yasofsky, Jr., Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, announced that defendant Frank DeSantis, 40, of Stuart, FL, pled guilty to one count of conspiring to commit mail and wire fraud and one count of conspiracy to defraud the Internal Revenue Service. Defendant Erin DeSantis,33, also of Stuart, FL, pled guilty to one count of conspiracy to commit mail and wire fraud. Each defendant faces a maximum term of imprisonment of five (5) years and a fine of up to $250,000 on each count. Both defendants pled guilty this morning before U.S. Magistrate Judge Ann E. Vitunac at the Federal Courthouse in West Palm Beach, Florida. No sentencing date has been set.
Both defendants were charged in Count 1 and pled guilty to conspiracy to commit mail and wire fraud while operating and having a financial interest in several investment and telemarketing rooms throughout South Florida. More specifically, the Information charged that Frank DeSantis and others would knowingly operate and oversee these investment telemarketing operations. To execute the scheme, defendant DeSantis made and caused others to make misrepresentations of material investment facts to potential investors, in order to convince them to invest in foreign currency options known as "forex." For example, investors were told that they could expect to make high profits with very little risk. In addition, the defendants deliberately failed to tell the investors that more than 95% of the investors had lost money and that Frank DeSantis had been previously barred by the national Futures Association from acting as a broker. Through this scheme, investors were defrauded out of millions of dollars during 2002 through 2005.
Count 2 of the Information charged Frank DeSantis with conspiracy to impede and obstruct the Internal Revenue Service by failing to report, account, and pay approximately $2,097,326 in income taxes due and owing for tax years 2002 through 2005.
Mr. Acosta thanked the Commodities Futures and Trading Commission (CFTC) in Washington, D.C., for their assistance in the investigation. Acosta also thanked the Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation for their investigation of this long-term international scheme. This case is being prosecuted by Assistant United States Attorney Jeffrey H. Kay.
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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