Phony Trust Fund Heir Sentenced To 5-15 Years For Investment Scam
Attorney General Spitzer today announced that a Luigi Alexander was sentenced to 5-15 years in prison by Westchester County Court Judge Kenneth Lange. In February Alexander, 55, pleaded guilty to four felonies for orchestrating a multi-million dollar investment scam.
Alexander told investors he was a the sole heir and chief operating officer of the multi-billion dollar D'Ellesandr'O Family Trust fund. He pled guilty to three counts of Grand Larceny in the Second Degree and one count of Scheme to Defraud in the First Degree.
"The defendant's claims about being the heir to a trust fund, promises of a high rate of return for investors, and his background as a doctor were all just the lies of a con man," said Spitzer "We will continue to vigorously investigate and prosecute these cases to protect the public from scam artists like Alexander. This case should serve as a warning to investors - there is no such thing as a guaranteed rate of return."
Alexander told prospective investors that the D'Ellasandr'O family trust was more than a hundred years old and that the Vatican was one of the original large investors. He stated that the trust was so rich in assets that it needed to incur debt to offset taxes. Alexander sold promissory notes and guaranteed a rate of return of 16.88% while assuring investors that their principal was safe.
Alexander told one investor who lost more than $700,000, that his money would remain in an escrow account. However, bank records seized from Alexander's Larchmont office showed that shortly after receiving the investor's funds, Alexander wired a large portion of the money to a bank in St. Lucia.
In the course of the investigation, Spitzer's office found that the promissory notes were worthless and that the various business ventures touted in Alexander's investment brochures were non-existent. Alexander also used a sophisticated Internet Web Site to swindle investors.
The case was handled for Attorney General Spitzer by Assistant Attorneys General Scott Andersen and Rebecca Mullane of the Securities Prosecution Unit.