LAWFUEL – The US Law Newswire – MICHAEL J. GARCIA, the United States Attorney for the Southern District of New York, announced that AUDREY ALOYSIUS was sentenced to seventy months in prison today for defrauding over twenty victims of millions of dollars through a bogus investment
scheme involving purported scrap steel shipments bound for China.
In addition to the prison term, United States District Court
Judge WILLIAM H. PAULEY III ordered ALOYSIUS to forfeit the
proceeds of her crime and to pay more than $3.8 million in
restitution to her victims. ALOYSIUS was sentenced in Manhattan
federal court after pleading guilty on November 17, 2005 to four
counts of wire fraud.
In sentencing ALOYSIUS, Judge PAULEY called her criminal
conduct “reprehensible” and motivated only by greed. According
to the superseding Information to which ALOYSIUS pleaded guilty,
statements made during the sentencing proceeding, and papers
filed in court:
Using various shell companies, ALOYSIUS held herself out
as a successful international businesswoman and offered investors
the opportunity to invest in purported shipments of scrap steel
that she claimed would be sent to China for sale, supposedly
earning substantial profits. To promote the legitimacy of her
scheme and to induce people to invest, ALOYSIUS had victims
execute elaborate contracts and provided them with promissory
notes, share certificates, forged documents, and photographs
purporting to relate to scrap steel shipments.
In fact, all of the scrap steel shipments were
fictitious. Rather than investing the money as she said she
would, ALOYSIUS used it to fund a luxurious lifestyle, spending
it on, among other things, travel, expensive club memberships,
fine dining, credit card purchases, and personal legal bills. In
one instance, ALOYSIUS required a set of investors to send her
the majority of their $2.5 million investment by a certain date.
Instead of paying for a scrap steel shipment, as she had
indicated to the investors, ALOYSIUS used the money to meet the
closing deadline on a $1.5 million apartment on Manhattan’s Upper
West Side the day after she received her victims’ money.
ALOYSIUS continued her fraudulent scheme even after she
was arrested in December 2004 on federal charges, resulting in
her re-arrest and pretrial detention beginning in March 2005.
Through her criminal scheme, ALOYSIUS stole more than $3.8
million dollars from more than 20 victims.
Mr. GARCIA praised the investigative work of the United
States Postal Inspection Service.
AUDREY ALOYSIUS, 42, a Malaysian national, lived in
Manhattan prior to her arrest.
The prosecution is being handled by the Major Crimes
Unit of the United States Attorney’s Office for the Southern
District of New York. Assistant United States Attorney
THOMAS G. A. BROWN is in charge of the prosecution.