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":