Date: July 23, 2024 Contact: newsroom@ci.irs.gov Earlier today, in federal court in Brooklyn, Francius Marganda, an Indonesian national, pleaded guilty to securities fraud in connection with a $23 million Ponzi scheme that defrauded hundreds of predominantly Indonesian and Indo-American victim investors. The plea proceeding took place before United States Magistrate Judge Marcia M. Henry. As part of his plea, Marganda admitted that he agreed to launder proceeds of the securities fraud, and he agreed to forfeit more than $7.5 million that he misappropriated from investors. When sentenced, Marganda faces up to 20 years in prison. Marganda was extradited to the United States from Singapore in November 2023. Breon Peace, United States Attorney for the Eastern District of New York; Christie M. Curtis, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Ivan J. Arvelo, Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations (HSI), announced the guilty plea. “As he admitted today, Marganda led a $23 million Ponzi scheme directly targeting his fellow countrymen, Indonesian and Indo-American victims, stealing their hard-earned funds and spending them on luxury goods and real estate,” stated United States Attorney Peace. “This Office will continue to use all tools available to protect those living in the Eastern District, from prevention efforts, including educating the public about red flags of financial fraud, to holding swindlers accountable for their crimes and seeking to recover and return victims’ money.” Mr. Peace thanked the Internal Revenue Service Criminal Investigation (IRS CI), New York; the Justice Department’s Office of International Affairs, particularly the DOJ Attachés based in Manila and Bangkok; law enforcement partners at the U.S. Embassy in Singapore, including the FBI’s Legal Attaché, the HSI Attaché and the U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations office; and Singaporean authorities, particularly the Singapore Police Force and the Attorney-General’s Chambers, for their assistance with Marganda’s arrest and extradition. Mr. Peace also thanked the Securities and Exchange Commission, Fort Worth Regional Office; the United States Attorney’s Office for the Southern District of New York; the Federal Trade Commission; the New York State Attorney General’s Office; the Commonwealth of Massachusetts Attorney General’s Office; the New York County District Attorney’s Office; the Queens County District Attorney’s Office; the New York City Police Department; the Westford Police Department, Westford, Massachusetts; the Richfield Police Department, Richfield, Minnesota; and the Lexington Police Department, Lexington, South Carolina, for their assistance with the investigation. “Francius Marganda’s guilty plea serves as a positive step toward justice for more than 400 victims, whom he and his co-conspirators are estimated to have swindled out of over $23 million collectively throughout the global, years-long Ponzi scheme. We recognize there is more work to be done and there are likely countless additional victims worldwide who have not yet come forward. HSI New York’s El Dorado Task Force is committed to leveraging our international footprint to protect the innocent public at home and abroad," said HSI New York Special Agent in Charge Ivan J. Arvelo. "We are proud to stand alongside the Eastern District of New York, the FBI, and all law enforcement partners in relentlessly pursuing predators who place their own selfish gain above all else.” As set forth in court filings, while living in New York, Marganda and his co-conspirators ran a scheme to defraud investors from May 2019 to May 2021 by soliciting investments in two sham loan programs called Easy Transfer and Global Transfer, which Marganda and his co-conspirators falsely represented were short-term, high-interest loan programs in which investors would earn passive income. The victims resided in more than a dozen states in the United States, including in New York, and in Indonesia. Many of the victims had limited means and had pooled their resources with relatives and friends to make investments. Marganda and his co-conspirators misappropriated the funds for their own benefit, including by buying real estate and luxury goods. The Ponzi scheme ultimately collapsed in May 2021, when Marganda and his co-conspirators stopped making payments. In July 2022, Mr. Peace was selected as the chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace plays a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including securities fraud, such as the fraud that Marganda committed. To request a financial fraud presentation from the U.S. Attorney’s Office for the Eastern District of New York, please email usanye-speakersbureau@usdoj.gov. The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Victor Zapana and Laura Zuckerwise are in charge of the prosecution, with assistance from Paralegal Specialist Kavya Kannan. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
