RED BANK, NJ – A former Red Bank based investment advisor is heading to federal prison for defrauding his clients.
According to U.S. Attorney Philip R. Sellinger, a man from Monmouth County, New Jersey, was sentenced to 33 months in prison for committing securities fraud.
Marchi, 55, of Red Bank, New Jersey, pleaded guilty to one count of securities fraud before U.S. District Court Judge Claire C. Cecchi on Jan. 4, 2023.
“Marchi, who was previously barred from the securities industry, purported to provide investment adviser services to clients. Beginning in December 2015, he managed and controlled Precipio Capital LLC, after previously managing and controlling a different investment company called Global Alliance Capital, LLC,” Sellinger said. “Through Global Alliance, Marchi solicited investments from multiple investors, and when he ceased operating Global Alliance, Marchi represented to those investors that he rolled over their accounts into Precipio. Marchi also solicited investors to invest directly into Precipio.”
Marchi was found guilty of diverting approximately $2.8 million of those funds from victim investors for other purposes, including paying back previous Global Alliance investors and his own use.
“Marchi made repeated misrepresentations to the victim investors, which included false claims about the status and performance of investments and false assurances to victims that their investments were profitable. Marchi also provided victims with falsified records, including trading records, performance reports, and K-1s,” the Department of Justice said today.