Rockland County Man Sentenced To 7 Years For Ponzi-Like Securities Fraud Scheme Targeting Local Haitian Community | USAO-SDNY

Damian Williams, the United States Legal professional for the Southern District of New York, introduced that RULESS PIERRE was sentenced to 84 months in prison yesterday in relationship with his Ponzi-like securities fraud strategies that generally focused PIERRE’s have Haitian community in Rockland County, New York.  PIERRE was convicted of securities fraud, wire fraud, and structuring offenses after a jury trial in Could 2021 right before U.S. District Judge Sidney Stein, who imposed the sentence. 

U.S. Legal professional Damian Williams explained:  “Ruless Pierre violated the rely on of his closest friends and fellow group associates.  Pierre’s brazen lies prompted numerous of his victims not only economic losses, but extensive-long lasting psychological destruction as properly.  This sentence achieves some measure of justice for Pierre’s victims and puts fraudsters on observe that we will shield investors from individuals that would violate their believe in.”   

In accordance to the Grievance, the Indictment, and the evidence presented at demo: 

Investment Promissory Fraud

From at least November 2016 as a result of October 2019, PIERRE solicited money from buyers in Ruless Pierre Consulting Team (“RPCG”) by falsely promising them that he would make a 20{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} return on their preliminary financial commitment every 60 days by means of stock trading (the “Promissory Be aware Fraud”).  The investments were being prepared down in paperwork identified as “Investment Promissory Notes.”  These expense contracts frequently promised that the investor would be paid out 20{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} desire each and every 60 times and that the trader could withdraw all funds from the expenditure with 30 days’ detect.  Based on these files and the phony representations of PIERRE, the traders understood that their principal and interest ended up assured.  

Throughout the course of the expenditure fraud plan, PIERRE fraudulently received about $2 million from approximately 100 traders.  Soon after obtaining funds from buyers, PIERRE deposited the funds into one of his personalized lender accounts or lender accounts of RPCG.  PIERRE then transferred the cash to investing accounts, where he engaged in unprofitable working day buying and selling.  Irrespective of his buying and selling losses, PIERRE regularly and falsely represented to investors, together with in financial investment statements that contains fictitious balances, that the trading was financially rewarding and that their investments were being developing as promised.  In addition to losing their income, PIERRE also made use of investors’ cash to pay back for individual expenses, like luxury automobiles.  On top of that, PIERRE further more hid the fact from investors by using dollars received from new buyers to make redemption payments to past investors, in Ponzi-like trend.

The Franchise Investment decision Fraud

Starting in or about November 2018, PIERRE began to offer you traders, like some persons who invested in his Promissory Take note Fraud, the option to invest in partnership pursuits in a partnership that would run 3 speedy-food items franchise destinations (hereinafter, the “Franchise Investment decision Fraud”).   At the time, PIERRE did not have any of the speedy-foods franchises, but he was in discussions with regards to purchasing them.  Every single financial investment was memorialized in a document entitled “Silent Partnership Settlement.” 

The Silent Partnership Agreements promised the investors a 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} every month return on the expenditure, in addition to a 40{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} professional rata share of the quarterly gross operating gain.  The minimum amount expense was $5,000. 

The Silent Partnership Agreements even further delivered that PIERRE was the General Husband or wife, and that he was dependable “for the comprehensive management, management, and guidelines connected to the procedure and conduct of the business enterprise.”

PIERRE gained economical statements for the franchise areas, which confirmed minimal earnings.  Even so, PIERRE promised buyers an unrealistic 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} regular monthly return on their financial commitment.

In or about April 2019, PIERRE ordered 1 speedy food stuff franchise for somewhere around $50,000.  Pierre did not obtain the other franchises.

PIERRE deposited the fast-foodstuff franchise investors’ dollars in various bank accounts, which commingled the cash from the Franchise Investment decision Fraud with the Promissory Observe Fraud.  In Ponzi-like vogue, PIERRE fraudulently misappropriated some of the fast-food franchise investors’ dollars to fork out back again investors in the Promissory Note Fraud.

In full, PIERRE elevated at minimum $200,000 by marketing the Silent Partnership Agreements to at minimum 18 traders.  Some of the buyers ended up compensated their five percent month-to-month distribution, but the vast the greater part of the traders had been not been designed whole.  The speedy-food stuff franchise went out of enterprise in December 2019.

The Embezzlement Fraud Scheme and Structuring

In the another scheme, PIERRE embezzled cash from his previous businesses.  From close to 2007 until finally February 2016, PIERRE was the director of finance for two unique lodges, which were owned by the very same enterprise (“Company-1”).  Just one lodge was found in the Palisades, New York (“Hotel-1”), whilst the other was found in Armonk, New York (“Hotel-2”) (collectively, “the Hotels”).   As the director of finance, PIERRE was the signatory on a number of lender accounts held in the title of the management businesses that managed the Lodges (“Management Companies”). 

Immediately after August 2018, PIERRE no for a longer time worked at both Resort-1 or Resort-2, but he regularly wrote himself checks payable to cash from the Management Companies’ financial institution accounts.  Specifically, from September 2018 by means of March 2019, PIERRE wrote over 70 checks to “cash” or “petty cash” from a person of the bank accounts for Lodge-1, for in excess of $300,000.

In addition, from March 2017 as a result of 2019, PIERRE deposited substantial quantities of income into his particular lender accounts in quantities that were normally significantly less than $10,000.  The deposits were executed at numerous bank areas and usually took position on the exact working day, consecutive days, or inside a brief time period of time.  For example, in just 7 months, from June 2018 by December 2018, PIERRE deposited approximately $225,612, by way of 138 dollars deposits all beneath $10,000, into a bank account in the identify of RPCG.

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In addition to the prison term, PIERRE, 52, of Nanuet, New York, was sentenced to 3 a long time of supervised launch and was ordered to pay forfeiture in the quantity of $3,701,893.91 and restitution to victims in the volume of $2,030,337.32.

Mr. Williams praised the outstanding investigative function of Homeland Stability Investigations and thanked the United States Postal Inspection Company, the United States Interior Revenue Company, the New York Metropolis Law enforcement Division, and the New York City Sherriff’s Office, which assisted in the investigation.  Mr. Williams also thanked the Securities and Trade Commission, which has brought and submitted a civil enforcement action in opposition to the defendant. 

This scenario is getting handled by the Office’s Securities and Commodities Fraud Activity Pressure. Assistant U.S. Legal professional Drew Skinner is in cost of the prosecution.