A former broker was sentenced to 5.25 years in prison on Wednesday for committing securities fraud to obtain more than $2.8 million from investors, according to the Justice Department.
Instead of placing clients' funds in legitimate investments, Mark Marchi, 55, of Red Bank, New Jersey, diverted their money for other purposes, including paying back previous investors and for his own personal use, the Justice Department said.
In addition to sentencing Marchi to 63 months in prison, District Court Judge Claire C. Cecchi sentenced him to three years of supervised release and ordered him to pay restitution of $2.87 million, Philip R. Sellinger, U.S. Attorney for the District of New Jersey, announced on Friday.
Marchi previously pleaded guilty in U.S. District Court for the District of New Jersey in Newark before Cecchi to an information that charged the ex-broker with one count of securities fraud.
The original information was filed by Sellinger on May 5, 2022.
According to documents filed in the case and statements made in court, Marchi claimed he was providing investment advisor services to clients. Starting in December 2015, he managed and controlled the firm Precipio Capital, after previously managing and controlling a different investment company, Global Alliance Capital.
