Spot Foreign Currency Trader Arrested for Running Fraudulent Scheme
Fraud Scheme Takes In Approximately $68 Million In 2007
Benton J. Campbell, United States Attorney for the Eastern District of New York, and Philip Bartlett, Acting Postal Inspector-in-Charge, New York Division, announced the arrest today of MICHAEL RICHARD MACCAULL on mail fraud and wire fraud conspiracy charges.1 The government has also filed seizure warrants for two automobiles which the defendant purchased for more than $245,000. The defendant’s initial appearance is scheduled this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. at the U.S. Courthouse, 225 Cadman Plaza East, Brooklyn, New York.
According to the complaint, MACCAULL is one of the principals of Razor FX, Inc., which held itself out as a financial services firm in the business of trading in the spot foreign exchange market, and at various times had offices located in Great Neck, New York and Upper Saddle River, New Jersey, and maintained a website at www.razorfx.com. The complaint charges that beginning in 2000, the defendant defrauded hundreds of investors by fraudulently representing that he was investing their money in the spot foreign exchange market, when in fact he and his partner were simply depositing the money in a bank account from which they paid their living expenses, including MACCAULL’s residence and an Aston Martin automobile. In order to conceal their scheme from investors, MACCAULL and his partner sent out false account statements to the investors reporting non-existent trades and profits. Whenever investors sought to withdraw funds, they were simply paid from the funds received from other investors. As alleged in the complaint, MACCAULL and his partner received approximately $68 million from investors in 2007 alone.
If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment.
The government’s case is being prosecuted by Assistant United States Attorneys Richard T. Faughnan, Cynthia M. Monaco, Kathleen Nandan, and Brendan King.
MICHAEL RICHARD MACCAULL
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