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Fri Nov 8, 2019, 08:59 AM

Rockland County Man Charged With Running Multimillion-Dollar Ponzi And Embezzlement Schemes

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Philip R. Bartlett, Inspector-in-Charge of the New York Field Division of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of an Indictment in Manhattan federal court charging RULESS PIERRE with securities fraud, wire fraud, and structuring charges. The Indictment alleges that PIERRE engaged in two separate fraud schemes. In the first scheme, PIERRE, as the owner of his own consulting firm, R. Pierre Consulting Group LLC (“RPCG”), solicited money from investors by falsely promising them that he would earn a 20% return on their initial investment every 60 days through stock trading. In truth and in fact, PIERRE lost most of the money he traded on behalf of his investors, while falsely reporting to investors that their funds were growing as promised. Also contrary to his representations, PIERRE secretly used investor funds to purchase luxury vehicles and even a fast food franchise for himself. He also used funds from new investors to make payments to other investors to avoid his scheme being detected. Through his lies, PIERRE obtained over $2 million from over 100 investors. In the second scheme, PIERRE defrauded his former employers, two hotels, by regularly embezzling funds out of bank accounts belonging to those hotels and then depositing those funds through structured transactions, into bank accounts PIERRE controlled. In total, PIERRE stole over $400,000 from the hotels. PIERRE was arrested yesterday in Nanuet, New York, and will be presented this afternoon before Chief Magistrate Judge Gabriel W. Gorenstein in Manhattan federal court.

Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, Ruless Pierre engaged in two separate schemes. In one scheme, Pierre allegedly promised an improbable 20% return on investors’ money, every 60 days, through stock trading. In reality, Pierre’s stock trading consistently generated losses for investors, and Pierre secretly used investors’ funds for his own personal use, including the purchase of luxury cars and even a fast food franchise. In another scheme, Pierre simply stole money from his former employers, brazenly moving money from their bank accounts to his personal bank accounts. Thanks to the outstanding efforts of our law enforcement partners, Pierre’s schemes have come to an end, and he now faces serious time in federal prison.”

Special Agent-in-Charge Fitzhugh said: “It is alleged Pierre perpetrated a securities fraud and embezzlement scheme that swindled investors out of millions of dollars and misappropriated even more from his employers’ business. He then flashed his illicit gains by buying high-end luxury vehicles and his own fast food franchise. Pierre’s deceptive business practices left more than a hundred victims in its wake, but HSI and its law enforcement partners have put an end to his criminal acts, leaving him to face the consequences for his actions.”

Inspector-in-Charge Bartlett said: “Mr. Pierre used his ties to the Haitian community, his trusted reputation in that community, and convincing pitch to target and cheat hundreds of victims in an illegal Investment Ponzi scheme. Postal Inspectors remind consumers if an investment promises unusually high returns, it’s likely bogus. Don’t let greed override common sense.”

Read more: https://www.justice.gov/usao-sdny/pr/rockland-county-man-charged-running-multimillion-dollar-ponzi-and-embezzlement-schemes

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