Federal Grand Jury Indicts El Paso Man in Connection with Fraud Scheme
Perpetrated Scheme Allegedly Defrauded Approximately 20 Investors Out of an Estimated $2 Million
| U.S. Attorney’s Office August 17, 2011 |
United States Attorney John E. Murphy announced that in San Antonio, a federal grand jury returned a seven-count indictment charging 46-year-old Scott Yermish, of El Paso, in connection with an estimated $2 million wire fraud scheme which targeted unsuspecting investors.
The indictment alleges that from September 2007 until July 18, 2011, Yermish obtained money and property through false and fraudulent pretenses, representations and promises. According to the indictment, Yermish posed as Scott Lindemann with Interactive Brokers (IB), an investment brokerage company located in Greenwich, Connecticut. Yermish misrepresented himself to investors concerning his previous qualifications, experience, and success as an investment professional. The indictment further alleges that Yermish managed to convince investors to provide him with user identification name, password and security access card in order access monies which they had wired from their personal accounts in Texas to an IB bank account in New York. The indictment also alleges that Yermish disguised his illegal scheme, as well as induced more investor deposits, by producing fraudulent IB account statements which falsely reflected substantial investment profits to investors. In some cases, Yermish sent investors statements representing balances in the millions or hundreds of thousands of dollars, when in fact, the investor’s accounts had been closed by IB due to inadequate balances and/or inactivity.
Upon conviction, each wire fraud charge is punishable by up to 20 years in federal prison and a maximum $250,000 fine.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law. This investigation was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Ray Gattinella is prosecuting this case on behalf of the Government.