Monmouth County Man Sentenced to 71 Months in Prison for Defrauding 16 People of $1.2 Million
|U.S. Attorney’s Office March 15, 2013|
TRENTON, NJ—A Monmouth County, New Jersey man was sentenced today to 71 months in prison for defrauding 16 victims, including friends and family, of $1.2 million in an investment fraud scheme, U.S. Attorney Paul J. Fishman announced.
Brian McCahery, 45, of Bradley Beach, New Jersey, previously pleaded guilty before U.S. District Judge Anne E. Thompson in Trenton federal court to an information charging him with engaging in a monetary transaction in excess of $10,000, using proceeds from wire fraud. Judge Thompson imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
McCahery was an employee of a “day trading” company in Matawan, New Jersey, which provided computer terminals, capital, and other business services to “day traders” who traded shares of public companies for profit.
From January 9, 2009 through March 14, 2011, McCahery carried out a scheme to defraud investors of $1.2 million in cash, checks, or wires, money which he obtained through false representations and promises. McCahery used the name of the day-trading company to promise a high rate of return on initial investments. He promised the investments would be used to purchase short-term equity funds and, in some instances, Initial Public Offerings. The investors provided him funds directly by wire, check, or cash, which were deposited in bank accounts in the name of McCahery or his spouse. McCahery used most of these funds for personal expenditures or to pay “lulling” payments to the victims to extend the life of the scheme.
McCahery communicated via phone, e-mail, and in person with the investors and falsely informed them where their money was being invested and the value of their investment accounts. In fact, such investment accounts for the most part were never created. McCahery modified a software program he obtained at the company to allow investors to log on and check the balance of their purported investment accounts. There, they would see false figures indicating their money had been invested in a particular account and was increasing in value.
In addition to the prison term, Judge Thompson sentenced McCahery to three years of supervised release with restrictions, including a bar on fiduciary positions and management or access to other people’s money and ordered restitution to the 16 victims of $1.19 million as well as forfeiture of $63,000.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Acting Special Agent in Charge David Velazquez, and IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Shantelle P. Kitchen, with the investigation that resulted in today’s sentencing.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton.