Alleged investment-fund fraudsters charged in Brooklyn

September 12, 2024 Brooklyn Eagle Staff

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DOWNTOWN BROOKLYN — A FIVE-COUNT INDICTMENT was unsealed Thursday at federal court in Brooklyn charging five men with scheming to defraud investors in Max Infinity Management LLC, Elder Fund Management LLC and a related series of funds. John Cangialosi, Peter Girgis, Gene Sarabella, Enrico Carini and Caner Otar were charged with conspiracy to commit securities fraud, conspiracy to commit wire fraud, securities fraud, investment adviser fraud and money laundering conspiracy, Breon Peace, U.S. Attorney for the Eastern District and the FBI’s Christie Curtis announced in a release. The defendants’ fraudulently diverted about $27 million of investor money for their own benefit, Peace said.

“As alleged, based on false promises the defendants bilked investors out of millions of dollars,” Peace said. “They lied about how they made money and promised near-certain returns on investment when, in truth, they charged astonishing markups, at times greater than 95%, and defrauded investors.”

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