Fake broker pleads guilty to securities fraud, faces up to 25 years in prison

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  • A man posing as a broker for two different companies scammed at least 19 investors out of more than $ 2.7 million, prosecutors said.
  • He embezzled over $ 500,000 of investor funds and lost most of the remaining funds while trading securities.
  • A sentencing hearing is scheduled for March 23, 2022.

Bogus broker who scammed at least 19 investors out of over $ 2.7 million now faces up to 25 years in prison after pleading guilty to securities fraud, says Andrew Birge, US attorney for the Western District of Michigan .

Joshua Louis Rupp, 37, formerly of West Olive, Michigan, embezzled more than $ 500,000 of investor funds on personal expenses which included electronics, groceries and vacations, and lost most of the remaining funds by negotiating securities, Birge had alleged.

Rupp pleaded guilty before Sally J. Berens, an American investigating judge. As part of the plea deal, Rupp agreed to pay roughly $ 2.7 million in full restitution to the victims of his crime, according to the plea deal he signed on Oct. 11, according to one. court record.

Rupp faces up to 25 years in prison when sentenced next year by US district judge Hala Y. Jarbou, Birge said on Friday. In addition, he could face up to five years of supervised release; a fine of $ 250,000 or the greater of double the gross gain or gross loss; and a mandatory special contribution of $ 100.

A sentencing hearing is scheduled for March 23 at a court in Lansing, Mich., According to a filing filed Monday.

Lucas X. Dillon, a lawyer for Lansing who represented Rupp in the case, did not immediately respond to a request for comment on Wednesday.

According to the plea deal and crime reports, from 2015 to 2019 Rupp recruited investors posing as a licensed broker or trader who worked at one of two different brokerage firms. The companies have not been identified.

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