Scheme defrauded Indonesian, Indo-American communities; hundreds of victims invested more than $23 million in sham programs
NEW YORK — Francius Marganda, an Indonesian national, pleaded guilty to securities fraud in connection with a $23 million Ponzi scheme that defrauded hundreds of predominantly Indonesian and Indo-American investors. The scheme was uncovered pursuant to an investigation by Homeland Security Investigations (HSI) New York’s El Dorado Task Force, the FBI, and the U.S. Attorney’s Office for the Eastern District of New York.
Marganda, a 41-year-old from Jakarta, Indonesia, and formerly of Queens, New York, appeared in a federal court in Brooklyn July 23. As part of his plea, Marganda admitted that he agreed to launder proceeds of the securities fraud, and he agreed to forfeit more than $7.5 million that he misappropriated from investors. When sentenced, Marganda faces up to 20 years in prison. Marganda was extradited to the United States from Singapore in November 2023.
“Francius Marganda’s guilty plea serves as a positive step toward justice for more than 400 victims, whom he and his co-conspirators are estimated to have swindled out of over $23 million collectively throughout the global, yearslong Ponzi scheme,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “We recognize there is more work to be done and there are likely countless additional victims worldwide who have not yet come forward. HSI New York’s El Dorado Task Force is committed to leveraging our international footprint to protect the innocent public at home and abroad. We are proud to stand alongside the Eastern District of New York, the FBI and all law enforcement partners in relentlessly pursuing predators who place their own selfish gain above all else.”
According to the investigation, while living in New York from May 2019 to May 2021, Marganda and his co-conspirators ran a scheme to defraud investors by soliciting investments in two sham loan programs called Easy Transfer and Global Transfer, which they falsely represented were short-term, high-interest loan programs in which investors would earn passive income. The victims resided in more than a dozen U.S. states, including New York, and in Indonesia. Many of the victims had limited means and had pooled their resources with relatives and friends to make investments.
Marganda and his co-conspirators misappropriated the funds for their own benefit, including by buying real estate and luxury goods. The Ponzi scheme ultimately collapsed in May 2021, when Marganda and his co-conspirators stopped making payments.
If you have information regarding the allegations in the indictment or believe that you may be a victim, HSI and the FBI have established a website and an email hotline for potential victims.
Arvelo thanked HSI’s foreign attachés; the Justice Department’s Office of International Affairs, particularly the:
- DOJ attachés based in Manila and Bangkok;
- Law enforcement partners at the U.S. Embassy in Singapore, including the FBI’s legal attaché and the U.S. Department of State’s Diplomatic Security Service Overseas Criminal Investigations office; and
- Singaporean authorities, particularly the Singapore Police Force and the Attorney-General’s Chambers
for their assistance with Marganda’s arrest and extradition.
He also thanked the:
- Securities and Exchange Commission’s Fort Worth Regional Office;
- U.S. Attorney’s Office for the Southern District of New York;
- Internal Revenue Service’s Criminal Investigation division in New York;
- Federal Trade Commission;
- New York State Attorney General’s Office;
- Commonwealth of Massachusetts Attorney General’s Office;
- New York County District Attorney’s Office;
- Queens County District Attorney’s Office;
- New York City Police Department;
- Westford Police Department in Westford, Massachusetts;
- Richfield Police Department in Richfield, Minnesota; and
- Lexington Police Department in Lexington, South Carolina
for their assistance with the investigation.
“As he admitted today, Marganda led a $23 million Ponzi scheme directly targeting his fellow countrymen, Indonesian and Indo-American victims, stealing their hard-earned funds and spending them on luxury goods and real estate,” stated U.S. Attorney Breon Peace. “This office will continue to use all tools available to protect those living in the Eastern District, from prevention efforts — including educating the public about red flags of financial fraud — to holding swindlers accountable for their crimes and seeking to recover and return victims’ money.”
HSI New York leads and directs all operational and administrative activities of the El Dorado Task Force. The El Dorado Task Force is the premier money laundering task force in the nation and comprises more than 200 law enforcement personnel representing approximately 35 federal, state and local law enforcement and regulatory agencies. It encompasses a standalone Cyber Division as part of an effort to stay abreast of emerging criminal threats and in keeping with current and future investigative priorities. The El Dorado Task Force’s mission is to disrupt, dismantle or render ineffective organizations involved in the laundering of proceeds of narcotics trafficking and other financial crimes. Since its inception in 1992, the task force has been responsible for the seizure of approximately $600 million and more than 2,100 arrests.