Florida Lawyer Pleads Guilty To $21 Million Investment Scam

MIAMI, FL — A 71-year-old South Florida lawyer who eluded federal agents for more than four years, pleaded guilty Wednesday to participating in a $21 million investment scam. Michael R. Casey defrauded investors in Commodities Online LLC, according to federal prosecutors. The scheme raised more than $21 million from 770 investors.

U.S. Attorney Ariana Fajardo Orshan of Miami announced the guilty plea along with FBI Special Agent In Charge Robert F. Lasky of the Miami Field Office and U.S. Marhsal Gadyaces S. Serralta of the Miami Field Office.

The company operated between January 2010 and April 2011.

Casey pleaded guilty before U.S. Magistrate Judge Andrea M. Simonton to one count of conspiracy to commit mail and wire fraud. He previously pleaded guilty to failing to appear in court in 2014. Casey is scheduled to be sentenced for both offenses on Nov. 27 before Chief U.S. District Judge K. Michael Moore.

According to federal prosecutors, Casey and his co-conspirators sold shares of ownership in COL, subscriptions to access the COL website and investment opportunities.

"In addition to selling COL ownership units, Casey and his co-conspirators offered investors the opportunity to fund purported contracts to buy and sell commodities," federal prosecutors said. "Casey and his co-conspirators offered a stated percentage return on investment, such as 10 percent within 30 days or 20 percent within 70 days."

Prosecutors said that Casey and his co-conspirators knew that the contracts for which investors sent money did not exist as represented.

"Casey and his co-conspirators represented to investors that COL had a track record of profits on these purported contracts," prosecutors explained. "However, Casey and his co-conspirators knew that COL did not have profits."

Prosecutors said that COL paid about $3 million to investors using funds from other investors. The investors lost $18,919,995.

Casey was indicted in 2012 along with four others in connection with the scheme. Prosecutors said that Casey failed to appear at a hearing in April of 2014. He was subsequently indicted for bond jumping.

In addition to Casey, other co-conspirators were also charged, according to federal prosecutors. They received sentences ranging from 17 months to 189 months in prison.

The case is being prosecuted by Assistant U.S. Attorneys Ana Maria Martinez and John Gonsoulin.

Photo by Paul Scicchitano