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FOREX Scammer Pleads Guilty
Written: August 2, 2011

On July 29, 2011, David R. Lewalski, 47, pleaded guilty in federal court in the Middle District of Florida to mail fraud in connection with his operation of a $30 million investment fraud scheme and faces a maximum penalty of 20 years in prison.  Lewalski was previously arrested on November 4, 2010, and subsequently indicted on December 1, 2010, for four counts of conspiracy, mail fraud and wire fraud (for which he faced 20-year maximum sentences on each charge).

Federal prosecutors had alleged that Lewalski operated Botfly LLC, through which he promised investors up to 10 percent returns per month, compounded monthly, through his trading in the foreign currency market (“FOREX”).  Instead of trading FOREX, Lewalski used the bulk of investor funds to make payments to other investors in a Ponzi-like scheme.

Lewalski and others working at his direction raised approximately $29,851,598 from investors, but only a small percentage of those funds, about $2.6 million) were invested in FOREX, the vast majority of which was lost.

Although Lewalski paid investors $14,339,887 in “returns,” such funding came from other victimized investors. Also, Lewalski spent millions of dollars of victim investor funds on personal expenses, including high end real estate, private jet travel, luxury automobiles, computer equipment and jewelry.

SEE, these prior FOREX scam articles in “Street Sweeper”:

Feds Go After Another Alleged FOREX Scam (April 13, 2011)

FOREX Pirate’s Ponzi Scheme Ends In U.S. Brig (April 4, 2011)


 
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