Five Charged in Connection With $60 Million Pre-IPO Fraud Scheme

Five men were charged with conspiracy to commit securities fraud, conspiracy to commit wire fraud, securities fraud, investment adviser fraud, and money laundering conspiracy in connection with a scheme to defraud investors in their business, the Justice Department announced Thursday.

According to the DOJ, John Cangialosi, Peter Girgis, Gene Sarabella, Enrico Carini, and Caner Otar engaged in a scheme to defraud investors and prospective investors in Max Infinity by misrepresenting that Max Infinity took no upfront fees, was registered with the Securities and Exchange Commission, and sourced pre-IPO shares directly from the issuing companies. The defendants also fabricated Max ...