New York Man Pleads Guilty To Securities Fraud For Defrauding Retired Victims Of More Than $400,000
The Defendant Executed the Investment Scheme while He Was Being Prosecuted for Similar Scam in another State
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Rudolph Carryl, 67, formerly of Oyster Bay, N.Y., appeared before U.S. Magistrate Judge David C. Keesler late Friday, March 15, 2019, and pleaded guilty to securities fraud, for defrauding retired victims of more than $400,000. Carryl was arrested on August 29, 2018, at a halfway house in Brooklyn, N.Y., where he was serving time for federal wire fraud charges related to a separate investment scheme.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Office joins U.S. Attorney Murray in making today’s announcement.
According to plea related documents and court proceedings, Carryl held himself out as an investment advisor to his victims and operated Carryl Capital Management (CCM), an investment management firm with offices in New York City. CCM maintained a website that purported the firm adhered to rigorous risk control measures, and was dedicated to achieving the investment goals for its clients.
In or about February 2015, Carryl induced a victim identified as “M.G.” to hand over money which he promised to invest in stocks. Over the course of two years, M.G., who was Carryl’s childhood friend and a retired nurse living in North Carolina, wired more than $75,000 to an account controlled by Carryl, based on Carryl’s misrepresentations that M.G.’s money would be used to purchase stocks on M.G.’s behalf. Similarly, in or about May 2015, Carryl solicited victims “W.B.,” a retired United States Air Force veteran, and his wife “A.B.,” both of North Carolina, to invest approximately $350,000 in a purported investment fund that was managed by Carryl. To induce the retired couple to part with their money, Carryl claimed that he was a successful investment adviser who managed investments for the country of Saudi Arabia and that he was friends with wealthy celebrities.
As Carryl admitted in court, rather than invest the victims’ funds as promised, Carryl used the money to pay for personal and other expenses, and to make substantial cash withdrawals.
Unbeknownst to his victims, Carryl had been convicted of federal wire fraud charges related to a separate investment scheme, and was sentenced in New York on or about August 9, 2017, to 12 months and one day in prison. After his sentencing but before he reported to the Federal Bureau of Prisons to begin serving his sentence, Carryl continued to be in contact with W.B., assuring W.B. that his investments were doing ok, all the while failing to disclose any information about his conviction or his impending report date to the Federal Bureau of Prisons.
The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. Carryl is currently detained. A sentencing date has not been set yet.
The FBI led the investigation. Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
In March 2019, U.S. Attorney Andrew Murray announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://edit.justice.gov/usao-wdnc/elder-justice-initiative