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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of New York

Wednesday, January 15, 2014

Investment Manager Sentenced To 188 Months For Investment Fraud Scheme

Earlier today, Aleksander Efrosman, the investment manager of Century Maxim Fund, Inc. and AJR Capital, Inc., was sentenced to a term of imprisonment of 188 months following his conviction for wire fraud. Efrosman, who fled the United States, was extradited from Poland and pleaded guilty on October 18, 2012. In addition to the prison term, Efrosman was ordered to pay restitution of approximately $4 million.

The sentence was announced by Loretta E. Lynch, United Attorney for the Eastern District of New York; George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Philip R. Bartlett, U.S. Postal Inspector-in-Charge, New York Division.

“This case proves the old adage: ‘you can run, but you cannot hide.’ Aleksander Efrosman stole over $5 million from unsuspecting investors and fled the country, then engaged in a globetrotting effort to escape justice. But the coordinated efforts of law enforcement resulted in his capture. Today, Efrosman has finally been held to account for his betrayal of his clients’ trust,” stated United States Attorney Lynch. “As proved again today, this office will relentlessly pursue and prosecute the perpetrators of investment fraud schemes.” Ms. Lynch extended her grateful appreciation to the Federal Bureau of Investigation and the Postal Inspection Service for their assistance in this case.

From January 2004 through June 2005, working from offices in Brooklyn and Staten Island, Efrosman defrauded investors by soliciting investments purportedly for the purpose of trading in the stock market and the foreign currency exchange market. Efrosman falsely told investors that he had a history of profitable trading and that the investments would be protected by a "stop-loss" mechanism which ensured that no trade lost more than 3%. Based on these misrepresentations, Efrosman raked in over $5 million from more than 100 investors. Efrosman did not invest the funds as promised, but instead used the funds for his personal benefit, including gambling over $3 million at the Foxwoods casino.

Efrosman fled the United States in 2005 with millions of dollars of investor funds. He first traveled to Cozumel, Mexico, then to Panama and ultimately to Poland, where he assumed the identity of “Mikhail Grosman” and obtained a high quality fraudulent Russian passport. In the meantime, federal agents in the United States pursued leads as to Efrosman’s whereabouts. In a coordinated multinational effort, law enforcement authorities in Austria, the Czech Republic, and Poland tracked, located, and ultimately arrested Efrosman in Krakow, Poland, on May 28, 2010.

The sentence was imposed by United States District Judge Nicholas G. Garaufis at the federal courthouse in Brooklyn, New York.

The government's case was prosecuted by Assistant United States Attorney Daniel Spector.

The Defendant:


Age: 51

Updated July 6, 2015