A Lowell man who prosecutors mentioned used his place as an accountant, tax preparer and funding advisor to defraud his purchasers out of greater than $3.5 million pleaded responsible in federal court docket on Wednesday.
Steven Xigoros, 55, who pleaded responsible to 2 counts of wire fraud and one depend every of aggravated identification theft and submitting a false tax return, faces greater than twenty years in jail when he’s sentenced in February, in keeping with a press launch from U.S. Attorney Rachael Rollins’ workplace.
Between 2015 and 2021 Xigoros used his place as a cash supervisor to induce purchasers to entrust their cash to him as a way to make numerous investments, to buy securities and to lend him cash for purported enterprise ventures, in keeping with the U.S. Attorney’s workplace.
The indictment filed towards Xigoros in federal court docket states as a part of the scheme, he prompted an older married couple to switch nearly all of their life financial savings to him so he might make investments the cash on their behalf. The $1.3 million, which the indictment states “came from more than 50 years of work” by the couple, was not invested by Xigoros, however as a substitute used for his personal private profit.
In order to hide the cash he had stolen from the couple, the indictment states Xigoros created faux account statements that claimed to replicate investments he had made on their behalf in numerous inventory and bond funds.
In whole, Xigoros defrauded his purchasers of greater than $3.5 million, which the discharge states he then used to fund his personal bills, which included making funds towards his playing money owed.
By failing to report the misappropriated funds as earnings, the discharge states Xigoros additionally didn’t pay taxes due and owed roughly $1.16 million to the Internal Revenue Service.
Xigoros was indicted by a federal grand jury in September 2021.
While on pretrial launch, the discharge states Xigoros was arrested on the Newark Liberty International Airport, in Newark, New Jersey, the place he was allegedly boarding a flight to Greece in an try to flee from prosecution.
Xigoros’ lawyer, Scott Lauer, mentioned he was unable to touch upon the case.
The cost of wire fraud features a potential sentence of as much as 20 years in jail, whereas aggravated identification theft offers for a compulsory sentence of two years in jail to be served consecutively to the sentence imposed for wire fraud. The cost of submitting false tax returns moreover features a potential sentence of as much as three years in jail.
Xigoros is scheduled to be sentenced in federal court docket by U.S. District Court Judge Nathaniel Gorton on Feb. 23.
Xigoros’ responsible plea was introduced by Rollins, Joseph Bonavolonta, particular agent accountable for the FBI Boston Division, and Joleen Simpson, particular agent accountable for the IRS Criminal Investigations in Boston. Assistant U.S. Attorneys Leslie Wright and David Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.