Brockport Investment Advisor Sentenced For Defrauding Investors In A Ponzi Scheme
CONTACT: Barbara Burns
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ROCHESTER, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Eduardo Galan, 65, of Brockport, NY, who was convicted of mail fraud and money laundering, was sentenced to three years in prison by U.S. District Judge Frank P. Geraci. The defendant was also ordered to pay $1,100,000 in restitution to the victims of the fraud.
Assistant U.S. Attorney John J. Field, who handled 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, Galan defrauded 18 investors out of $821,912 before the fraud was discovered. Further investigation disclosed that Galan owed other clients money as well, for a total of $1,098,567.26.
The sentencing is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Shantelle P. Kitchen.