- A federal judge rejected RICO claims in a class-action lawsuit against former pastor Eddy Alexandre, citing a securities law provision.
- Alexandre pleaded guilty to commodities fraud in 2023 for operating a trading platform that prosecutors called a Ponzi scheme.
- He was ordered to forfeit nearly $250 million and pay over $213 million in restitution to investors.
- The Commodity Futures Trading Commission secured a nearly $229 million penalty against him last year.
A federal judge in New York rejected racketeering claims Thursday, blocking a class-action lawsuit that sought damages from a pastor convicted of running a major crypto fraud scheme. U.S. District Judge Ronnie Abrams ruled that the RICO claims were based on securities fraud, which isn’t actionable under a 1995 reform law. However, the plaintiffs who say they were bilked have 30 days to file an amended complaint.
The lawsuit sought at least $750 million from EminiFX founder Eddy Alexandre and associates. Alexandre pleaded guilty in 2023 after authorities said he raised $248 million from over 25,000 investors, promising to “double their money within five months”.
Prosecutors Forex-trading-platform-sentenced-nine-years-prison-240-million”>said he did not invest a substantial portion of funds raised from his church and Haitian community. Consequently, they noted he failed to disclose millions in losses and diverted $14.7 million to his personal account.
Alexandre purchased a $155,000 BMW with investor funds. At sentencing, he was ordered to forfeit $248.9 million and pay $213 million in restitution, and he is currently held in a Pennsylvania prison according to the Bureau of Prisons.
Last year, another federal judge ordered Alexandre and his company to pay nearly $229 million in a CFTC case. Meanwhile, similar cases involving religious figures have emerged elsewhere, like a Colorado pastor found to violate securities laws for a crypto project.
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