Business Owner from Orlando Pleads Guilty to Criminal Charges in $57 Million Investment Fraud Case
On May 7th, 2024, the United States District Court for the Northern District of Florida announced that Avinash Singh—a 42-year-old man from Orlando, Florida—has entered a guilty plea for two counts of wire fraud and three counts of money laundering. Mr. Singh reportedly played a key role in a $57 million investment fraud scheme that victimized approximately 1,100 investors. Below, our Florida investment fraud lawyer discusses the particular allegations and charges in this case in more comprehensive detail.
The Investment Fraud Scheme: $57 Million from 1,100 Investors (2013 to 2020)
According to court documents, Avinash Singh orchestrated a vast investment fraud. Using his company called Highrise Advantage, LLC, Mr. Singh was convicted of operating a $57 million fraud scheme that deceived more than 1,100 investors. The fraud occurred between 2013 and 2020.
It was centered around retail forex contracts. A forex contract, often referred to as a foreign exchange contract, is an agreement to buy or sell a specific amount of currency at a predetermined price on a set date in the future. These contracts are used primarily to hedge against currency fluctuations but can also be used for speculative purposes.
However, the indictment in this case emphasized that Mr. Singh invested falsely representing his track record and success as a forex trader. In reality, he invested less than five percent of the funds solicited from investors. The funds were largely funneled into Ponzi-type payments and siphoned off to cover personal expenses.
Criminal Conviction Obtained Against Ringleader (Orlando Businessman Avinash Singh)
Avinash Singh faced both criminal and civil legal action. He was. He was indicted on multiple counts of wire fraud and money laundering—facing up to 20 years in prison for each count of wire fraud and 10 years for each money laundering charge. Mr. Singh pled guilty to the charges and he is expected to face sentencing later this year.
Investigator Findings: The Forex Investment Fraud Scheme Was a Typical Ponzi Scheme
A comprehensive investigation revealed that Avinash Singh used Highrise Advantage, LLC in a manner that was characteristic of a typical Ponzi scheme. Rather than investing the funds as promised, he paid previous investors with the capital from new ones. The cycle continued until the scheme unraveled. As long as new investors pour money into a Ponzi scheme, it can generally stay afloat. However, in this case, the Commodity Futures Trading Commission (CFTC) and several other regulatory bodies eventually stepped in. They took enforcement action and the scheme collapsed.
Contact Our Florida Investment Fraud Attorney Today
At Carlson & Associates, P.A., we fight for investor rights. Did you or someone close to you suffer significant financial losses in an investment fraud scheme? Our attorneys are prepared to explore every potential option to help you recover compensation for your damages. Ready to get started? Contact us at our Miami office today for a confidential initial consultation.
Source:
justice.gov/usao-mdfl/pr/operator-highrise-advantage-llc-pleads-guilty-criminal-charges-related-over-57-million