$80M Ponzi Scheme Operator In Sarasota Guilty Of Multiple Charges: DOJ

Sarasota FL

09 May, 2022

11:27 AM

Description

SARASOTA, FL — Following a 13-day trial, a federal jury in Tampa found a Sarasota man guilty of multiple charges related to operating an $80 million Ponzi scheme. Michael J. DaCorta, 57, was found guilty of conspiracy to commit wire fraud and mail fraud, money laundering, and filing a false income tax return, according to a Department of Justice news release. He faces a combined maximum penalty of 33 years in federal prison. A sentencing date has not yet been set. From November 2011 through April 18, 2019, DaCorta ran an investment company called Oasis International Group, Ltd. He and his co-conspirators persuaded at least 700 victims to invest in Oasis through promissory notes and other means, causing their victims to lose more than $80 million, according to the DOJ. DaCorta, who had effectively been banned from conducting foreign exchange trading (FOREX) by agreement with the National Futures Association, convinced victims to invest in Oasis by falsely claiming that the company was "reaping enormous profits by being a 'market maker' and collecting 'spread' on voluminous FOREX trades," the agency said. He also claimed the opportunity was "essentially risk-free" and that Oasis was "well-collateralized," according to the DOJ. "In reality, Oasis was not making markets and had no true revenue. The 'spread' earnings were being paid on each trade by Oasis back to Oasis to create the illusion of revenue, which was published to investors on fictious account statements and an online investor portal. The online investor portal showed the 'spread' credits but concealed catastrophic underlying trading losses." DaCorta and his conspirators used the balance of their victims' funds to make Ponzi-style payments to perpetuate the scheme and fund their lavish lifestyles, the agency said. DaCorta used investor funds to buy a Maserati and Range Rovers for his family members, a country club membership, multiple million-dollar homes in Florida, college tuition for family members, flights on private jets, and lavish trips to Europe and the Cayman Islands. He also underreported his 2017 federal income tax return, claiming a negative income and receiving a tax refund.