Judge Rejects RICO Claims in Lawsuit Over Pastor-Led Crypto Ponzi Scheme
A federal judge in New York dismissed RICO claims in a class-action lawsuit against a pastor and associates linked to an alleged crypto Ponzi scheme, stating that the Private Securities Litigation Reform Act of 1995 bars such claims when based on securities fraud. Investors, who claimed losses from the scheme organized by EminiFX founder Eddy Alexandre, now have 30 days to amend their complaint. Alexandre, who pled guilty to commodities fraud in 2023, raised $248 million from over 25,000 people by falsely promising to double their money within five months. He failed to invest a significant portion of the funds and did not disclose millions in losses, instead diverting $14.7 million to his personal account and making luxury purchases. Alexandre was ordered to forfeit $248.9 million and pay $213 million in restitution, and is incarcerated in Pennsylvania. Separately, he and EminiFX were ordered to pay nearly $229 million in a CFTC action. The case highlights ongoing concerns about religious figures exploiting trust in crypto schemes.
