Two Businessmen Plead Guilty To Wire Fraud Conspiracy For Orchestrating Large-Scale Investment Scheme
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Bryan John Cohen, 46, of Indian Trail, N.C. was ordered to serve 42 months in prison and a year of supervised release for orchestrating an investment scheme. He was also ordered to pay $291,000 as restitution.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), in North Carolina, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and the sentencing hearing, from 2015 to 2020, Cohen defrauded at least 10 victims of more than $385,000, by inducing them to invest money in his purported investment businesses, OTC Bully, Ascension Trading, and Recharge Investments, and in other business ventures. Court records show that Cohen falsely represented to victims, most of whom were Cohen’s friends and acquaintances, that he was a financially savvy investor with a successful track record in the financial industry, and that he would invest their funds using a computer algorithm called the “Dewey System.”
As Cohen previously admitted in court, to convince victims their investments were legitimate, Cohen provided them with bogus Investment Agreements that purported, among other things, that Cohen would not charge any investment fees, and that the money would be invested in a manner “expected of a reputable, experienced and competent professional investment manager.” To further lull victims into thinking their investments were safe, Cohen supplied them with fake profit and loss sheets on a monthly basis, which falsely indicated the victims’ investments were growing.
Contrary to claims Cohen made to his victims, court documents show that Cohen did not invest their money as promised. Rather, Cohen used the money to pay for personal expenses and to make Ponzi-style payments to older investors using new investors’ money. In November 2020, Cohen pleaded guilty to wire fraud.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI in Charlotte, and the North Carolina Department of Public Safety, Special Operations and Intelligence Unit, for their investigation.
Assistant U.S. Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.