West Palm Beach Man Sentenced in $1.3 Million Precious Metal Investment Fraud Scheme

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida; William J. Maddalena, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office; Amos Rojas, Jr., Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Miami Field Office; J. Thomas Cardwell, Commissioner, State of Florida’s Office of Financial Regulation; and Edward M. Morley, Chief, Stuart Police Department, announced Tuesday’s sentencing of defendant Richard Engel, 38, of West Palm Beach, FL on one count of conspiracy to commit mail fraud for his participation in a $1.3 million fraud involving the precious metals market. U.S. District Court Judge K. Michael Moore sentenced Engel to 51 months in prison.

According to statements made in court and documents filed in the case, Engel acted as a broker who was purchasing precious metals, such as gold, silver, and palladium, on behalf of private investors. Though false representations as to material facts in the solicitation of funds, Engel helped secure nearly $1.3 million in funds from the victim investors. The victims were made to believe that their money was being invested in the precious metal market. In fact, however, Engel and his co-defendants actually used the funds for their personal benefit.

Mr. Ferrer commended the FBI, FDLE, State of Florida’s Office of Financial Regulation, and the Stuart Police Department for their work in the case. This case was prosecuted by Assistant U.S. Attorney Carmen Lineberger. The sentencing hearing was handled by Assistant U.S. attorney Christopher Parente.