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Monmouth County Man Sentenced for $ 2.8 Million Securities Fraud Scheme

Monmouth County

By: Yuritza Arroyo

Federal authorities announced a Monmouth County man was sentenced to 63 months in prison for committing securities fraud to obtain over $2.8 million from victim investors.

According to federal officials, Mark Marchi, 55, of Red Bank, New Jersey, previously pleaded guilty to an information charging him with one count of securities fraud on Jan. 4, 2023, in Newark federal court.

According to documents filed in this case and statements made in court:

Marchi, previously banned from the securities industry, purported to provide investment advisory services to clients.

According to the documents, beginning in December 2015, he managed and controlled Precipio Capital LLC after previously managing and maintaining a different investment company called Global Alliance Capital, LLC.

Through Global Alliance, Marchi solicited investments from multiple investors, and when he ceased operating Global Alliance, Marchi represented to those investors that he rolled over their accounts into Precipio. Marchi also solicited investors to invest directly in Precipio.

Authorities say instead of using the funds on legitimate investments, Marchi diverted approximately $2.8 million of those funds from victim investors for other purposes, including paying back previous Global Alliance investors and his use.

Marchi made repeated misrepresentations to the victim investors, which included false claims about the status and performance of investments and false assurances to victims that their investments were profitable.

According to officials, Marchi also provided victims with falsified records, including trading records, performance reports, and K-1s.

In addition to the prison term, Marchi was sentenced to three years of supervised release and ordered to pay restitution of $2.87 million