A former FBI special agent pleaded guilty to defrauding investors in a foreign currency trading scheme, the U.S. Attorney’s office for the Eastern District of Michigan said.
Jeffrey Royer entered his plea on Monday in federal court to a charge of wire fraud, admitting that he defrauded multiple investors, the district attorney’s office said. Sentencing is scheduled for Sept. 3. He faces up to 20 years in prison.
As part of the plea agreement, he agreed to pay $576,818.83 in restitution to the victims of the fraud.
“The defendant betrayed the trust of investors, concealed the truth, and caused significant financial harm through a fraudulent foreign currency trading scheme,” District Attorney Jerome F. Gorgon Jr. said.
Royer acknowledged to federal officials that he told investors their money would be used for commodity futures training, according to the district attorney’s office. He also admitted to telling investors that their principal was protected against loss and that a certain amount of future earnings would happen.
After he experienced what authorities called “significant trading losses,” Royer lied to investors and provided them with fictitious monthly account statements that claimed positive returns despite the actual losses.
Royer had previously served a federal sentence that ended in 2012 on charges of racketeering conspiracy, securities fraud conspiracy, securities fraud, obstruction of justice, and witness tampering.
The case was investigated by the FBI.
