Short Hills, New Jersey, Investment Manager Admits Using Ponzi Scheme To Steal More Than $675,000
NEWARK, N.J. – An investment manager with an office in Short Hills, New Jersey admitted today that he fraudulently induced investments, concealed investment losses, and diverted more than $675,000 in investor money for his own use, Acting U.S. Attorney William E. Fitzpatrick announced.
Mark Moskowitz, 48, of Short Hills, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of wire fraud.
In a separate legal proceeding, the N.J. Bureau of Securities today ordered Moskowitz and his trading company, Edge Trading LLC, to pay a $1 million civil penalty for selling unregistered fraudulent securities and misusing investors’ funds for personal expenses.
According to documents filed in this case and statements made in court:
Moskowitz controlled an investment fund under the names Edge Trading Partners L.P. and Edge Trading LLC (Edge Trading). In addition to touting his investment skill and experience, Moskowitz concealed losses from investors and falsely told them that Edge Trading was growing year after year. Based on these misrepresentations, investors continued to entrust additional funds to Moskowitz and left previous investments under his control.
Edge Trading was an investment fund that Moskowitz created and operated, starting in or around 2012. Moskowitz told investors that Edge Trading was invested in U.S. and foreign equities, futures contracts, and option contracts and that the fund’s investments continued to show positive returns. In reality, Moskowitz redirected investor money to his personal use, which he concealed from the investors.
The count of wire fraud to which Moskowitz pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 5, 2017.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, with the investigation leading to today’s guilty plea. He also thanked the N.J. Bureau of Securities in the State Attorney General’s Office, under the direction of Attorney General Christopher S. Porrino and Acting Bureau Chief Amy Kopleton, for its assistance in the investigation.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: David Holman Esq., Assistant Federal Public Defenders, Newark