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Justice News

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

FOR IMMEDIATE RELEASE
Monday, May 18, 2015

Brockport Investment Advisor Pleads Guilty To Ponzi Scheme

CONTACT: Barbara Burns
PHONE:  (716) 843-5817
FAX #:                 (716) 551-3051

ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Eduardo Galan, 64, of Brockport, NY, pleaded guilty to mail fraud and money laundering before U.S. District Judge Frank P. Geraci. The combined charges carry a maximum penalty of 30 years in prison and a $500,000 fine.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that Galan owned and controlled a financial services business, S&G Unlimited Services, in Brockport. The defendant was a registered securities broker until October 2008, at which time he was barred from the industry. From January 2008 to March 2013, Galan engaged in a Ponzi scheme. The defendant promised investors that he would use their money to broker private mortgage transactions, but instead used it to repay earlier investors and cover personal and business expenses. In total, he defrauded 18 investors out of $821,912 before the fraud was discovered. As part of the plea deal, Galan also admitted that he owes other clients money as well, and agreed to pay the investment fraud victims and his other clients a total of $1,098,567.26.

The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.

Sentencing is scheduled for September 2, 2015, at 10:00, before Judge Geraci.

Updated May 19, 2015