Smithtown Man Pleads Guilty to $3.1M Wire Fraud Scheme

A Smithtown man pleaded guilty Friday to stealing $3.1 million in retirement savings from unsuspecting victims in New York, New Jersey and elsewhere, gambling much of it on sporting events.

According to the U.S. Department of Justice, Alexander Swanson, 48, faces up to 20 years for felony charges that he engaged in a wire fraud scheme and must also forfeit the proceeds of his fraud.  

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George C. Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.  

According to the criminal charges filed today in the Eastern District of New York, Swanson misrepresented his job, background, and investment experience to his victims, and then provided the victims with false reports touting his investments’ performance. These misrepresentations fraudulently induced the victims to invest with Swanson, who, officials said, stole and squandered their retirement savings for his own benefit, including gambling his victims’ savings on sporting events.

 “Today, Swanson admitted that he constructed a false persona, lying about his job, background, and investment expertise, all for the purpose of bilking unsuspecting individuals out of their hard earned retirement savings. Promising them secure investments, he instead provided fraudulent reports that lured them deeper into his web of lies and deceit,” said United States Attorney Lynch in a statement.  

 “Just as Swanson played fast and loose with the truth, he also played with his victims’ money, gambling much of it away on sporting events. Due to the combined efforts of law enforcement, the real Swanson will now receive the only payout his actions deserve: fraud charges, a guilty plea, and the prospect of a significant jail sentence.”

The guilty plea was entered Friday morning at the federal courthouse in Central Islip.