Unregistered commodity pool operator arraigned on fraud charge

ATLANTA –Kevin Perry has been arraigned on charges that he ran a foreign currency investment fraud scheme.

“This defendant allegedly defrauded investors who trusted him with their hard-earned money,” said U.S. Attorney Byung J. “BJay” Pak.  “Even after regulators took action against Perry, he allegedly continued to seek to defraud investors, including at one point attempting to defraud an undercover FBI agent.”

“Instead of living off well-earned investments, Perry’s alleged victims now have to worry about their financial futures,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Nothing can make victims of investment fraud whole again, but the FBI will continue to make it a priority to investigate and punish anyone who preys on investors for their own personal greed.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Perry allegedly led investors to believe that his investment company, Lucrative Pips, was successfully earning substantial profits by investing in the foreign currency (or “forex”) market.  Perry induced investors into sending money by signing agreements that claimed the investors’ initial investments were secure from loss.  In actuality, Lucrative Pips was never registered as a “commodity pool operator” with the Commodity Futures Trading Commission.  Also, Perry had never generated the historical returns represented to investors, and he was using investor money to enrich himself or to pay off other investors, with the goal of enticing others to invest with him.

The indictment further alleges that even after the Commodity Futures Trading Commission filed a civil complaint against Perry, he continued to make fraudulent investment pitches to potential investors.  In December 2018, Perry made a series of fraudulent investment pitches to an undercover FBI agent, who was posing as a potential investor.  Perry told the undercover FBI agent that an investment of $10,000 would return a profit of $19,000 to $25,000 per month and that he minimized any risk by doing a “100% money-back guarantee.”

Kevin Perry, 21, of Cartersville, Georgia was arraigned Monday, February 25, 2019 before U.S. Magistrate Judge Catherine M. Salinas.  A federal grand jury returned an indictment on December 12, 2018, alleging that Perry committed wire fraud.

Members of the public are reminded that the indictment only contains charges.  The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.

This case is being investigated by the FBI.

Assistant U.S. Attorney Thomas J. Krepp and Nathan P. Kitchens, Deputy Chief of the Cyber and Intellectual Property Crime Section, are prosecuting the case.   The Commodity Futures Trading Commission provided invaluable assistance throughout the course of the investigation.

Georgia Men Indicted for Check Cashing Scheme Targeting Banks

ALBANY, NEW YORK – Alphonso L. Howard, Jr., age 28, and Javonte J. Johnson, age 22, both of Decatur, Georgia, were indicted yesterday for creating counterfeit checks and then cashing them at banks in Saratoga and Warren Counties.

The announcement was made by United States Attorney Grant C. Jaquith; James N. Hendricks, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI);

and New York State Police Acting Superintendent Keith M. Corlett.

Each defendant is charged with one count of conspiring to commit bank fraud, three counts of bank fraud, and three counts of aggravated identity theft.

The charges in the indictment are merely accusations.  Each defendant is presumed innocent unless and until proven guilty.

According to the indictment, between July 1, 2018 and September 26, 2018, the defendants and others defrauded financial institutions by intercepting and stealing checks sent through the U.S. Mail; using information from these legitimate checks to create counterfeit checks drawn on the same financial accounts as the stolen, legitimate checks; and then cashing and attempting to cash the counterfeit checks at financial institutions in Saratoga and Warren Counties.

The New York State Police arrested Howard and Johnson on September 26, 2018, in Queensbury, New York.  Howard and Johnson have been in custody since their arrest, and will be arraigned on the federal charges at a later date.

If convicted, each defendant faces at least 2 years and up to 30 years in prison, a maximum $1 million fine, and 5 years of post-release supervision.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.  The indictment also seeks forfeiture of approximately $19,000 in cash possessed by the defendants at the time of their arrest, as well as a money judgment in the amount of $164,077.70.

This case is being investigated by the FBI and the New York State Police-Troop G, and is being prosecuted by Assistant U.S. Attorney Michael Barnett.  Other agencies have assisted in the investigation and prosecution, including the District Attorney’s Offices in Saratoga and Warren Counties, the Glens Falls Police Department, the Burlington Police Department (Vt.), Vermont State Police, and the Stowe Police Department (Vt.).

Johnson has also been indicted on grand larceny and other charges in Jefferson County, New York, in a case brought by the Jefferson County District Attorney’s Office and investigated by the Watertown Police Department.  Johnson is presumed innocent of these charges as well.

Webinar on NIJ Administration of Justice Solicitation

Registration is open for a webinar on March 5, 2019 at 1 p.m. ET to learn about the National Institute of Justice Research and Evaluation on the Administration of Justice solicitation and application requirements. With this solicitation, NIJ seeks to fund investigator-initiated, interdisciplinary research and evaluation projects related to the administration of justice in three areas: (1) eyewitness evidence; (2) police deflection strategies; and (3) forensic testimony. To register, go to https://www.ncjrs.gov/App/eventscalendar/CalendarSearchDetail.aspx?strConfID=28500. 

Questions concerning the solicitation should be submitted to the National Criminal Justice Reference Service: 1-800-851-3420; TTY at 301-240-6310 (for hearing impaired only); email to grants@ncjrs.gov; fax 301-240-5830; or web chat at https://webcontact.contactncjrs.org/ncjchat/chat.jsp. See also NIJ.gov's solicitation FAQ page here https://www.nij.gov/funding/Pages/faqs.aspx.