David Lewalski of Botfly LLC sentenced to 20 years in jail for forex scam

According to a federal criminal Complaint filed in U.S. District Court in the Middle District of Florida, David R. Lewalski, 47, formerly of Gainesville, FL, and his co-conspirators allegedly solicited money about $30 million from hundreds of investors based on false statements that Lewalski could earn the investors up to 10 percent interest per month by trading on the foreign currency (Forex ) market.

The Complaint alleged that Lewalski, who operated a company called Botfly LLC:

• invested only a small portion of investors’ funds in trading activities;
• generated little, if any, profits trading FOREX;
• paid “interest Payments ” totaling approximately $15 million to investors using other investors’ money (a classic Ponzi device); and
• spent lavishly on himself, his friends and his family — spending millions of dollars leasing high-end New York City real estate, private jets, and purchasing luxury automobiles (Porsches and a Ferrari), clothing and jewelry (including a gold and diamond Rolex watch).

Judge Whittemore also ordered Lewalski to forfeit more than $29.8 million and numerous computers.

Forbes and Law360 report.

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