Introduction to the Case

A former NYPD officer from Bellerose was sentenced in Brooklyn federal court to three years in prison for defrauding millions of dollars from investors.
QNS file photo

Background of the Crime

A former NYPD officer from Bellerose was sentenced in Brooklyn federal court on Sept. 10 to three years in prison for defrauding over 20 investors out of more than $4 million in a foreign exchange (forex) trading fund.
Jason Rodriguez, 38, pleaded guilty last November to conspiracy to commit wire fraud related to his role as the chief operating officer of Technical Trading Team LLC, based on a slew of misrepresentations.

Details of the Scheme

According to court filings and the defendant’s admissions, Rodriguez and his co-conspirator Edwin Carrion founded the Technical Trading Team (TTT) in the spring of 2020. Rodriguez had sole trading authority over the vast majority of the nearly $5 million raised from over 20 individual investors. Rodriguez and Carrion promised investors annual investment returns ranging from 18% to 24% and convinced them to invest based on a number of material misrepresentations. Rodriguez and Carrion promised investors that they were making a safe investment; in reality, Rodriguez disregarded numerous safeguards that he promised investors were in place to protect their investments.

Specific Misrepresentations

For example, though Rodriguez and Carrion promised investors that the Technical Trading Team would never expose more than 1% of the Technical Trading Team investors’ funds to market risk at any given time, only to ignore that safeguard as well. Rodriguez also promised investors that TTT would not hold trading positions open overnight, which Rodriguez ignored on multiple occasions, including once holding a trade open from February 2021 until April 2022, resulting in a catastrophic loss of more than $150,000, representing approximately 12.61% of TTT’s assets. Once it became clear to Rodriguez that TTT could not pay its investors their promised returns using trade profits, Rodriguez turned TTT into a Ponzi scheme and began using money from new investors to pay older investors their interest payments and principal redemptions.

Reaction from Authorities

“Today, the defendant received just punishment for defrauding over 20 individual investors out of millions of dollars on hard-earned money,” U.S. Attorney for the Eastern District of New York Joseph Nocella said.
In addition to the term of imprisonment, U.S. District Judge Ramon Reyes ordered Rodriguez to pay a forfeiture money judgment of $748,394 and to pay restitution of $2,305,256.
“The defendant violated the trust his clients placed in him by falsely promising them a safe investment opportunity,” Nocella said. “Our Office and our law enforcement partners will continue to pursue justice for victims of financial crime who fall prey to individuals like Rodriguez who advance their greedy desires at the expense of others.”

Conclusion

The sentencing of Jason Rodriguez serves as a reminder of the severe consequences of engaging in financial crimes. The case highlights the importance of thorough research and due diligence before investing in any opportunity. It also underscores the commitment of law enforcement agencies to protect investors and bring perpetrators of financial crimes to justice.

FAQs

• Q: What was Jason Rodriguez sentenced for?
  • A: Jason Rodriguez was sentenced for defrauding over 20 investors out of more than $4 million in a foreign exchange (forex) trading fund.
• Q: How long was Jason Rodriguez sentenced to prison?
  • A: Jason Rodriguez was sentenced to three years in prison.
• Q: What other penalties did Jason Rodriguez face besides imprisonment?
  • A: Besides the prison term, Jason Rodriguez was ordered to pay a forfeiture money judgment of $748,394 and to pay restitution of $2,305,256.
• Q: What was the nature of the scheme Rodriguez was involved in?
  • A: Rodriguez was involved in a Ponzi scheme, where he used money from new investors to pay older investors their interest payments and principal redemptions after it became clear that the trading profits could not cover the promised returns.