Guilty Plea in $30 Million Florida Ponzi Scheme

A man who took in over $30 million from investors who falsely believed they were investing in a sophisticated foreign currency trading operation pled guilty to one charge of mail fraud.  David R. Lewalski, 47, entered his guilty plea before United States Magistrate Judge Mark A. Pizzo in the Middle District of Florida.  In addition to a potential prison sentence, Lewalski may also face up to a $250,000 fine along with an order of restitution to defrauded investors.  

Lewalski operated Botfly LLC, advertising potential monthly returns of up to ten percent from trading in foreign currency.  In total, Botfly collected nearly $30 million from investors.  Yet only a small percentage of investor funds were actually used to trade foreign currency, and most of this percentage was lost by Lewalski.  The majority of funds were used to make payments to older investors to create the appearance that Botfly was a successful operation and to create a false appearance of prosperity to attract future investors.  Additionally, Lewalski spent millions of dollars on personal and business expenses.  

Mail fraud carries a potential maximum prison sentence of twenty years.  A sentencing date has not yet been set.