Two men, Patrick Gallagher, 44, and Michael Dion,49, have pleaded guilty for their roles in perpetrating a foreign exchange trading scheme to steal $30 million from their investor victims.
Patrick Gallagher and Michael Dion each pleaded guilty to one count of conspiracy to commit securities fraud, and each face a maximum penalty of five years in prison.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
How Patrick Gallagher & Michael Dion scammed $30 million from their investor victims
According to court documents, Patrick Gallagher, 44, of Middleborough, Massachusetts, and Michael Dion, 49, of Orlando, Florida, devised a scheme in which they would solicit victims to invest in their foreign exchange company, Global Forex Management, by promising them large returns based on previous trading results that they had fabricated.
They told the victims that their funds would be traded using an online trading platform provided by a co-conspirator’s company, IB Capital.
Instead, Gallagher and Dion were working with other co-conspirators in the Netherlands to steal the victim investors’ money.
In May 2012, Gallagher and Dion executed their scheme by intentionally creating losing trades for the investors and effectively stole $30 million from their victims.
After fabricating the massive trading loss, Gallagher and Dion routed the stolen money through shell companies they had set up all over the world.