Defendant Pleads Guilty to Investor Fraud
A Dearborn man pleaded guilty in federal court today to his role in a $2 million investment fraud scheme, U.S. Attorney Barbara L. McQuade announced today.
McQuade was joined in the announcement by Special Agent in Charge Edward Hanko of the Federal Bureau of Investigation, Special Agent in Charge Brian Moskowitz of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and Special Agent in Charge Erick Martinez of the Internal Revenue Service - Criminal Investigation.
Ahmed Alabadi, 45, pleaded guilty to wire fraud involving multiple victims. Alabadi, a dual citizen of Iraq and the United States, sought investments in his company, Fedek Group, Inc., by promising that investors would earn a substantial return, sometimes of up to 100% within one year, and that the money invested would be safe or guaranteed. Alabadi represented that investors’ money would be utilized to support rebuilding efforts in Iraq, engage in real estate transactions and an export/import business, and to fulfill contracts that his company had with the United Nations and various foreign countries. In reality, Alabadi failed to deliver the returns that were promised to investors, and many investors never received their principal investment back after their period of investment expired. Money collected from investors was not used for legitimate rebuilding or business activities. Instead, money collected from later investors was used to pay earlier investors in a Ponzi scheme fashion.
As part of his plea agreement, Alabadi agreed to pay restitution in the amount of $2,349,000 to the defrauded investors who are listed in the First Superseding Indictment. Alabadi also faces a sentence of up to 20 years in prison. The suggested range for his sentence under the federal sentencing guidelines is 51 to 63 months imprisonment. Alabadi is scheduled to be sentenced before United States District Court Judge Denise Page Hood on October 4, 2012 at 2:30 p.m.
United States Attorney McQuade stated, “Investment fraud is just a sophisticated way of stealing people’s money, but it sometimes leads to the financial ruin of victims.”
"The victims of this scheme were under the impression they were making legitimate investments around the world but were in fact being swindled out of large sums of money," said Moskowitz. " HSI special agents will continue to aggressively investigate those who seek to profit by taking advantage of others."
“Alabadi stole over $2 million by misleading everyday working class citizens. Schemes designed to defraud innocent investors are violations of Federal law and the consequences of such schemes can and will result in jail time." said Special Agent in Charge, IRS Criminal Investigation, Erick Martinez.
This case was investigated by Special Agents of the FBI, Department of Homeland Security and IRS-Criminal Investigation . This case is being prosecuted by Assistant U.S. Attorney Louis P. Gabel.