Westchester Investment Advisor Indicted On Securities Fraud And Grand Larceny Charges

Attorney General Spitzer today announced the indictment of a Westchester County man who scammed investors of more than $4 million, while falsely claiming to be the chief operating officer of a billion dollar trust fund.

Luigi A. Alexander, 55, of Pelham, NY, was arraigned today on a nine-count indictment filed in Westchester County Court. The charges filed against Alexander include grand larceny, securities fraud and falsifying business records. If convicted on all counts, he faces up to 20 years in prison.

Alexander, who calls himself Dr. Alexander, told investors that he was the sole heir and CEO of the D'Ellesandr'O Family Trust and said the trust had assets in excess of one billion dollars. Alexander provided inconsistent accounts of his origins and told potential investors he had graduated from a medical school that proved to be non-existent. Spitzer's investigation found that Alexander operated his business out of a lavish office in Larchmont, NY.

"This defendant misrepresented himself as a qualified investment adviser and took the hard-earned monies of investors," Spitzer said. "We will aggressively prosecute this case and continue to ensure that investors are protected against scam artists who place greed above the interest of their clients."

Spitzer's investigation found that in 1999 and 2000, Alexander issued investors corporate promissory notes, assured them that their money was safe and guaranteed them a rate of return of 16.88 percent. Alexander told investors the funds were to remain in an escrow account at HSBC Bank. In fact, the monies have disappeared from the bank accounts Alexander controlled. The A.G.'s investigation has found that more than 60 people may have invested funds with Alexander.

Spitzer acknowledged the valuable assistance of the Westchester County District Attorney's office.

The case is being handled for Attorney General Spitzer by Assistant Attorneys General Scott Andersen and Rebecca Mullane of the Securities Prosecution Unit under the supervision of Bureau Chiefs Janet Cohn and Eric Dinallo.

The indictment is merely an accusation and the defendant is presumed innocent until and unless proven guilty.