Eddy Alexandre, CEO of the EminiFX crypto and FX platform, has begun serving the nine-year sentence imposed in his criminal case. Meanwhile, the civil case’s receiver plans to hold a YouTube session on Wednesday, Sept. 6 to provide updates about the funds seized from Alexandre.
This reporting is sponsored by a grant from The McGraw Center for Business Journalism at the Craig Newmark School of Journalism at the City University of New York.
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NEW YORK — EminiFX CEO Eddy Alexandre began serving his nine-year prison term on fraud in a Pennsylvania prison last week, according to government records. Meanwhile, the receiver tasked with redistributing funds seized from Alexandre set a YouTube town hall for Sept. 6.
Alexandre surrendered on Aug. 28 to FCI Allenwood Low, a low-security federal correctional facility in Allenwood, Pa. The Bureau of Prisons site currently has his release date marked as April 9, 2031.
While Alexandre’s imprisonment is a milestone in the ongoing case, it does not address what matters most to defrauded investors – return of their money. Nor does it resolve the issue of people who collected funds on Alexandre’s behalf.
“I’m not 100 percent satisfied that Eddy is in prison because he wasn’t the only one involved,” said Bill, a Pennsylvania man who asked to use a pseudonym for fear of reprisal.
“He’s in prison; and that is a fair system,” said Bill, who said he invested $61,000. “Now we need the authorities to do their job and put the others in prison, too.”
The FBI arrested Alexandre, 51, in May 2022 after finding that his cryptocurrency and foreign exchange investment platform was a pyramid scheme. Investigators said Alexandre advertised a “trade secret” robot-assisted trading software that yielded 5% to 9.99% returns weekly. He said investors could become millionaires in two to three years. In reality, prosecutors said, Alexandre showed investors fictitious returns. He also used investor funds for some payouts, to reward top performers and to buy real estate and luxury goods.
Alexandre pled guilty in February 2023. In July, U.S. District Judge John P. Cronan sentenced Alexandre for operating a scheme that victimized an estimated 25,000 people. He ordered Alexandre to serve 108 months in prison and to make restitution of nearly $214 million.
Prison date changes
At the time, Cronan also set Aug. 18 as the date for Alexandre, a chaplain in the Seventh-day Adventist church, to surrender to the Bureau of Prisons to start serving the sentence. He also recommended placement in a northeast facility so the married father-of-three could be closer to family.
On Aug. 14, four days before the surrender date, Alexandre asked the judge for an extension because the Bureau of Prisons had not assigned him yet. Cronan granted the extension until Sept. 6, saying for Alexandre to turn himself in within five days if assigned earlier.
Then on Aug. 24, Alexandre’s attorneys sent another letter to Cronan asking for a new surrender date of Aug. 28.
“The reason for this request is that, although the BOP designated Mr. Alexandre on August 17, he learned of the designation for the first time on August 23,” the attorney, Emily Bove, wrote in explanation. “The prosecutors and Pretrial Services consent to this request.”
Cronan approved the new request.
Located about 200 miles west of New York City, FCI Allenwood Low houses 1,057 inmates, according to the facility’s site. Along with two additional facilities – a medium security prison and a high security penitentiary – Allenwood Low makes up a three-facility federal correctional complex in the town of Allenwood.
Low security is one of five designations in the prison system – minimum, medium, high, complex and administrative are the other four. It means the facilities have double-fenced perimeters, dormitory or cubicle housing, and strong work and program components, the BOP site says.
Receivership town hall planned
In the civil case overseeing the seized assets, Judge Valerie Caproni approved the procedures to identify which investors may be eligible to receive their money back.
David Castleman, the court-appointed receiver, plans to hold a live town hall via YouTube about recent activities and financial status. If time allows, he’ll answer questions.
The town hall is set for Wednesday, Sept. 6 at 7 p.m. Eastern.
To participate, go to the receiver’s YouTube channel: https://www.youtube.com/@EminiFXReceiver/.