EminiFX founder and CEO Eddy Alexandre arrested in New York
EminiFX founder and CEO Eddy Alexandre has been arrested for commodities and wire fraud.
The DOJ alleges EminiFX was a $59 million dollar Ponzi scheme.
As per a May 12th press-release, the DOJ claim
ALEXANDRE solicited more than $59 million in investments from hundreds of individual investors after making false representations in connection with the EminiFX trading platform.
EminiFX, as reviewed here on BehindMLM back in March, soliciited investments of up to $2 million. This was done on the promise of a ROI, purportedly generated via a forex trading bot.
ALEXANDRE falsely represented to investors that they would double their money within five months of investing by earning a 5% weekly return on their investment using a “Robo-Advisor Assisted account” to conduct trading.
ALEXANDRE referred to this technology as his “trade secret” and refused to tell investors what the technology was.
Here’s what actually happened to invested funds;
EminiFX did not earn 5% weekly returns for its investors. ALEXANDRE did not even invest the vast majority of investor funds entrusted to him, and ALEXANDRE sustained over $6 million in losses on the limited portion of funds that he did invest, which he did not disclose to his investors.
Instead of using investors’ funds as he had promised, ALEXANDRE misdirected at least approximately $14,700,000 to his personal bank account and failed to invest the vast majority of the investors’ funds.
For example, ALEXANDRE used $155,000 in investor funds to purchase a BMW car for himself and spent an additional $13,000 of investor funds on car payments, including to Mercedes Benz.
The rest of the funds invested into EminiFX were used to pay early investors, affiliates and YouTube shills.
In our March review, BehindMLM correctly identified EminiFX’s securities fraud. We also correctly identified EminiFX operating as a Ponzi scheme.
Despite losing millions of dollars when he tried to trade, Eddy Alexandre fancied himself somewhat of a trading expert:
Alexandre marketed himself through Building Wealth With Investments, on which EminiFX was listed as a website partner:
And when he wasn’t running $59 million dollar Ponzi schemes, Alexandre spoke at churches targeting the Haitian community in the US:
At the time of Alexandre’s arrest, SimilarWeb pegged 93% of traffic to EminiFX’s website as originating from the US.
If convicted Alexandre is facing up to thirty years in prison.
At time of publication Alexandre’s previously sealed criminal case has yet to show up on Pacer.
Stay tuned for docket updates as we continue to track the case.
Update 13th May 2022 – Some additional coverage from Inner City Press, who attended Alexandre’s arraignment today.
Eddy Alexandre, charged with commodities fraud in connection with a purported cryptocurrency and forex trading platform named EminiFX, was ordered released on $3 million bond on May 12.
Expecting case docket to be made public sometime over next 24 hours.
Update 14th May 2022 – Public access to Alexandre’s case docket is still unavailable.
I’ve published an update on Alexandre’s criminal proceedings, detailing how the FBI took him down.
Alexandre has been released on $3 million bond. He is subject to 24/7 home incarceration in New York.
Expecting public access to Alexandre’s criminal case docket next week. When I’ve go that I’ll be able to provide further details.
Update 17th May 2022 – Alexandre’s criminal case docket is now public so I’ve published the current status of the case.
Update 13th February 2023 – Eddy Alexandre has pled guilty to one count of commodities fraud.
Considering EminiFX only launched in late 2021, this might be the fastest turnaround from the DOJ we’ve seen.
EminiFX was still running at the time of Alexandre’s arrest (but probably would have collapsed soon like all the other MLM crypto Ponzis this week).
My favorite part was this:
MLM + securities fraud = Ponzi scheme
Impressively quick takedowna How do they decide who to go after though?
Why are other sites like Novatech (basically the same setup as Eminifx) allowed to continue operating for much longer and ultimately cause increasingly more damage?
Not sure what specifically triggered this one. Inner City Press report there are parallel civil proceedings, suggesting the SEC/CFTC might have their own case.
If that’s it then we’re likely looking at complaints and reporting from the public. But this is still the fastest turnaround I’ve seen from launch to capture.
Yes, I agree with you. What about the MikeG Ponzi scheme? Why do long to take down
I can’t speak for US authorities and other Ponzi schemes.
I’m still unclear on what triggered such a rapid response to EminiFX.
What will happen to those who invested?
With respect to the DOJ’s Eddy Alexandre criminal case? Nothing.