Former Ceo Of Paramount Management Sentenced In Manhattan Federal Court To Seven Years In Prison
summary
Alex V. Ekdesman, former CEO of Paramount Management, LLC, was sentenced to 87 months in prison for commodities fraud after soliciting $1.38 million from 115 investors under false pretenses of forex trading and misappropriating over $1 million for personal and business expenses.
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Alex V. Ekdesman, CEO of Paramount Management, LLC, was sentenced to 87 months in prison for commodities fraud after soliciting at least $1.38 million from approximately 115 investors between May 2011 and May 2013, promising to invest in foreign exchange trading. Instead, he diverted more than $1 million of investor funds to pay for personal expenses, family members, business costs, and employee salaries, with none of the money used for forex transactions. Ekdesman pled guilty in February 2015 to one count of commodities fraud, and the case was prosecuted by the U.S. Attorney’s Office for the Southern District of New York with support from the FBI and CFTC under the Financial Fraud Enforcement Task Force.
narrative
Alex V. Ekdesman, the former CEO of Paramount Management, LLC, was sentenced to 87 months in prison for orchestrating a commodities fraud scheme that spanned from May 2011 to May 2013. He solicited at least $1.38 million from approximately 115 investors by falsely representing that their funds would be invested in foreign exchange (forex) currency transactions. In reality, Ekdesman misappropriated over $1 million of the investor funds to pay for personal expenses, including luxury items, payments to family members, and unrelated business costs, as well as to compensate his employees. None of the investor money was used for legitimate forex trading, and Ekdesman concealed the fraud through false representations and fabricated performance reports. He pled guilty to one count of commodities fraud on February 5, 2015, before U.S. District Judge Vernon S. Broderick. The case was prosecuted by the U.S. Attorney’s Office for the Southern District of New York, with investigative support from the Federal Bureau of Investigation and the Commodity Futures Trading Commission. The prosecution was part of the President’s Financial Fraud Enforcement Task Force, a multi-agency initiative aimed at combating large-scale financial crimes. Ekdesman, 42, of Holmdel, New Jersey, received the sentence as part of a broader effort to hold financial fraud perpetrators accountable.
Classified advance-fee(confidence 80%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
Preet Bhararathe united states commodity futures trading commission for its assistancethe work of the federal bureau of investigation
Keywords
paramount managementekdeshmanparamountmanagementtask forcelinkfederalmanhattan federalgovernment non-governmentnon-government sitessites typicallytypically appearappear externalexternal linklink icon
Extracted insights
Dollar amounts 3
- $1.50M $1.5 million $1M–$10M
- $1.38M $1.38 million $1M–$10M
- $1.00M $1 million $1M–$10M
Entities 3
- person Preet Bharara
- agency the united states commodity futures trading commission for its assistance
- agency the work of the federal bureau of investigation
Triples 11
- Preet Bharara Announced ALEX V. EKDESHMAN, the Chief Executive Officer of Paramount Management, LLC, was sentenced yesterday to eighty-seven months in prison for his role in a commodities fraud scheme
- EKDESHMAN Ran A fraudulent scheme in which he solicited over $1.5 million from over 100 investors for the purpose of investing in foreign exchange currency transactions and then misappropriated the majority of investors’ funds to pay for personal and business expenses
- EKDESHMAN Solicited Over $1.5 million from over 100 investors for the purpose of investing in foreign exchange currency transactions
- EKDESHMAN Misappropriated The majority of investors’ funds to pay for personal and business expenses
- EKDESHMAN Charged In May 2014
- EKDESHMAN Pled Guilty To one count of commodities fraud on February 5, 2015
- Mr. Bharara Praised The work of the Federal Bureau of Investigation
- Mr. Bharara Thanked The United States Commodity Futures Trading Commission for its assistance
- The charges Brought In connection with the President’s Financial Fraud Enforcement Task Force
- The task force Established To wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes
- The Justice Department Filed Over 18,000 financial fraud cases against more than 25,000 defendants since fiscal year 2009
Extracted body text (4,445c)
Press Release Former Ceo Of Paramount Management Sentenced In Manhattan Federal Court To Seven Years In Prison Tuesday, June 30, 2015 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALEX V. EKDESHMAN, the Chief Executive Officer of Paramount Management, LLC, was sentenced yesterday to eighty-seven months in prison for his role in a commodities fraud scheme. EKDESHMAN ran a fraudulent scheme in which he solicited over $1.5 million from over 100 investors for the purpose of investing in foreign exchange currency transactions and then misappropriated the majority of investors’ funds to pay for personal and business expenses. EKDESHMAN was originally charged in May 2014, and he was sentenced yesterday by the Honorable Vernon S. Broderick, United States District Judge. According to the Information, other documents filed in Manhattan federal court, and statements made during court proceedings: From at least May 2011 through May 2013, EKDESHMAN ran a fraudulent commodities trading scheme. EKDESHMAN, who was chief executive officer of Paramount Management, LLC (“Paramount Management”), located in New York, New York, represented to investors that Paramount Management was in the business of investing in foreign exchange currency transactions, or “forex.” Through various employees of Paramount Management, EKDESHMAN solicited investor funds on the understanding that the funds would be solely invested in forex. As a result of these solicitations, EKDESHMAN and his employees collected at least $1.38 million from approximately 115 investors. Contrary to EKDESHMAN’s promise to invest the investors’ funds in forex, EKDESHMAN misappropriated the large majority of investor funds. More than $1 million in investor funds were never traded in forex. Instead, EKDESHMAN used those funds to make payments to himself and his family members, to buy personal items, to pay for business expenses related to Paramount Management, and to pay employees of Paramount Management. EKDESHMAN, 42, of Holmdel, New Jersey, pled guilty to one count of commodities fraud on February 5, 2015. Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Commodity Futures Trading Commission for its assistance. The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.govLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link.. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jessica A. Masella is in charge of the prosecution. Updated July 1, 2015 Component USAO - New York, Southern Press Release Number: 15-163
OCR text (4,445c · plain-text · 99% conf)
Press Release Former Ceo Of Paramount Management Sentenced In Manhattan Federal Court To Seven Years In Prison Tuesday, June 30, 2015 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Preet Bharara, the United States Attorney for the Southern District of New York, announced that ALEX V. EKDESHMAN, the Chief Executive Officer of Paramount Management, LLC, was sentenced yesterday to eighty-seven months in prison for his role in a commodities fraud scheme. EKDESHMAN ran a fraudulent scheme in which he solicited over $1.5 million from over 100 investors for the purpose of investing in foreign exchange currency transactions and then misappropriated the majority of investors’ funds to pay for personal and business expenses. EKDESHMAN was originally charged in May 2014, and he was sentenced yesterday by the Honorable Vernon S. Broderick, United States District Judge. According to the Information, other documents filed in Manhattan federal court, and statements made during court proceedings: From at least May 2011 through May 2013, EKDESHMAN ran a fraudulent commodities trading scheme. EKDESHMAN, who was chief executive officer of Paramount Management, LLC (“Paramount Management”), located in New York, New York, represented to investors that Paramount Management was in the business of investing in foreign exchange currency transactions, or “forex.” Through various employees of Paramount Management, EKDESHMAN solicited investor funds on the understanding that the funds would be solely invested in forex. As a result of these solicitations, EKDESHMAN and his employees collected at least $1.38 million from approximately 115 investors. Contrary to EKDESHMAN’s promise to invest the investors’ funds in forex, EKDESHMAN misappropriated the large majority of investor funds. More than $1 million in investor funds were never traded in forex. Instead, EKDESHMAN used those funds to make payments to himself and his family members, to buy personal items, to pay for business expenses related to Paramount Management, and to pay employees of Paramount Management. EKDESHMAN, 42, of Holmdel, New Jersey, pled guilty to one count of commodities fraud on February 5, 2015. Mr. Bharara praised the work of the Federal Bureau of Investigation, and thanked the United States Commodity Futures Trading Commission for its assistance. The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.govLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link.. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jessica A. Masella is in charge of the prosecution. Updated July 1, 2015 Component USAO - New York, Southern Press Release Number: 15-163