 |
|
|
| U.S. Department of Justice United States Attorney District of Connecticut Connecticut Financial Center FOR IMMEDIATE RELEASE May 6, 2008 CONTACT: Tom Carson STATEN ISLAND MAN SENTENCED TO FIVE YEARS IN FEDERAL PRISON FOR ROLE IN BOILER ROOM INVESTMENT SCHEME |
|
Nora R. Dannehy, Acting United States Attorney for the District of Connecticut, today announced IGOR MALYAR, also known as “George Falcone,” and “Michael Safir,” 35, of Staten Island, New York, was sentenced today by United States District Judge Janet C. Hall in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for his participation in a “boiler room” investment scheme that victimized approximately 275 individuals. Judge Hall also ordered MALYAR, jointly and severally with others involved in the scheme, to pay restitution in the amount of $3,602,425 to his victims. On December 15, 2005, MALYAR pleaded guilty to one count of securities fraud and one count of conspiracy to commit, mail, wire and securities fraud. According to documents filed with the Court and statements made in court, from approximately January 2001 until at least March 2004, MALYAR participated in a conspiracy to defraud investors by selling them bogus stock for a company that did not exist. Specifically, MALYAR and several co-conspirators falsely represented to their victim investors that they worked for a venture capital firm called Blue Square Management, Inc., and that the money the victims had invested would be used to purchase securities in what was described as a private ATM-management company named Cash Money Lending Corp. These representations were not true, and the stock was fraudulent. After receiving the investors’ funds, members of the conspiracy provided investors with bogus statements and falsely indicated that the investments would generate significant earnings. MALYAR and others did not place investors’ money into investments as represented, but instead diverted the investors’ funds for their own personal use and benefit, and converted a large amount of the funds into cash. This case was investigated by the Federal Bureau of Investigation and the Social Security Administration Office of Inspector General, Office of Investigations, with the assistance of the Securities and Exchange Commission. The U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement have also assisted in this matter. This case was prosecuted by Assistant United States Attorney Michael S. McGarry.
|
|