Individual Who Portrayed Himself as Experienced Stock Trader Sentenced to 30 Months’ Imprisonment for Defrauding Investor
Gonzalo Ortiz was sentenced yesterday in federal court in Brooklyn by United States District Judge William F. Kuntz II, to 30 months in prison for defrauding an investor of nearly $600,000 by making false representations about Ortiz’s trading expertise and the profitability of various investments. The Court also ordered Ortiz to pay $224,500 in restitution to the victim and imposed two years of supervised release to follow his custodial sentence. In November 2021, Ortiz pleaded guilty to one count of investment advisor fraud.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, and the United States Securities and Exchange Commission, New York Regional Office, for their significant cooperation and assistance in this case.
Between approximately April 2015 and May 2017, Ortiz falsely represented himself to an investor (the “Victim”) as a successful investment adviser who had made profits for other individuals by trading stocks on their behalf. Ortiz convinced the Victim to allow him to invest the Victim’s money, promising significant returns. Based on those misrepresentations, the Victim made successive investments with Ortiz over a period of years. During this time, Ortiz falsely told the Victim that the investments were profitable and sent the Victim a false account statement to support these claims. In reality, Ortiz made poor trading decisions that resulted in the loss of a portion of the Victim’s money, and also stole some of the Victim’s money for himself, siphoning off portions of the investments to pay for personal expenses, including clothing, food and car payments. Ortiz controlled nearly $600,000 of the Victim’s money, stole approximately $224,500 for himself, and lost a significant amount of the Victim’s money to unprofitable trades.
The case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Alixandra Smith and Andrew D. Grubin are in charge of the prosecution.
Hackensack, New Jersey
E.D.N.Y. Docket No. 19-CR-161 (WFK)
Originally published at https://www.fbi.gov/contact-us/field-offices/newyork/news/individual-who-portrayed-himself-as-experienced-stock-trader-sentenced-to-30-months-imprisonment-for-defrauding-investor
originally published at HUMAN RIGHTS - USA DAILY NEWS 24