A federal judge imposed a prison sentence on a former New Jersey broker who pleaded guilty to a securities fraud scheme, reports Financial Advisor.
55-year-old Mark Marchi was ordered to spend 63 months behind bars, along with three years of supervised release.
According to documents and statements made in court, Marchi managed and controlled Precipio Capital LLC, after previously managing and controlling a different investment company called Global Alliance Capital, LLC. for which he solicited investments. When he stopped operating Global Alliance, Marchi told the investors that he rolled over their accounts into Precipio, while also soliciting those investors to invest directly into Precipio.
But according to the Department of Justice, Marchi did not use the investors’ funds for legitimate investments and instead misappropriated $2.8 million of the funds for other purposes, including paying back previous Global Alliance investors and diverting money for his own use, including rent, credit card bills and monthly automobile payments.
To conceal the scheme, federal prosecutors said Marchi made misrepresentations to the investors, including false claims about the status and performance of investments and false assurances that their investments were profitable. He also provided false documents that included trading records, performance reports, and K-1s.
Marchi, who pleaded guilty to one count of securities fraud, was ordered to pay restitution in the amount of $2.87 million.
He was previously barred from the securities industry after pleading guilty in 1998 to felony charges of conspiracy to violate federal securities laws.
The attorneys at Lewitas Hyman have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Lewitas Hyman at (844) 651-2641 or through our online contact form for a no-cost evaluation of your matter.