Louis Spina, LJS Trading LLC Charged with Wire Fraud
Louis Spina, a resident of Miami, Florida was arrested on November 25 and charged with collecting $18 million for a Ponzi scheme ran through his investment advisory business, LJS Trading.
Spina offered investors high returns ranging from 9 percent to 14 percent a month. Part of the investor money was siphoned and used for personal expenses including cars, luxury housing and charitable donations according to the federal charges against him.
Louis Spina ran his alleged scheme in Fair Haven using LJS Trading LLC as his primary conduit. He convinced about 28 investors to entrust him with around $18 million, from August 2010 to November 2013. He promised a monthly rate of return on the principal investments with the agreement that Spina would keep profits that were more than the specified rate of return, according to the charges.
Spina then transferred about $8 million of investor money into a trading account. At the same time he used about $10 million to pay investors monthly interest payments that he promised. He also made a $400,000 donation to a private university, according to the allegations.
Spina stands accused of one count of wire fraud which carries a maximum penalty of 20 years and a fine equal to twice the gross gain or loss from the offense or $250,000.
He made his first appearance before U.S. Magistrate Judge Lois H. Goodman in Trenton on the day of his arrest.
While he was suffering losses in trading by October 2010, Spina told his investors that he was making gains. He supported these claims with manipulated screenshots that demonstrated he was making gains, the federal prosecutors charged.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud or misconduct. They are currently studying recovery options for victims of Spina’s alleged fraud. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment fraud or misconduct may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no obligation evaluation of their recovery options, at 585-310-5140.