Haitian-American Businessman Sentenced for $350,000 Corporate Financial Fraud Scheme

A Brooklyn-based businessman was sentenced to 24 months in prison today by United States District Judge Brian M. Cogan for running a fraudulent scheme that targeted members of the Haitian American community.

The Scheme

Frantz Simeon, 67, of Brooklyn, operated his company First Black Enterprises, Inc. and convinced investors from Brooklyn and Queens that their investments would generate 10% monthly returns with little to no risk. However, instead of conducting legitimate business activities, Simeon used the money to pay fake interest payments to earlier investors and fund his own personal expenses.

The Investigation

The scheme was investigated by the United States Postal Inspection Service (USPIS) and prosecuted by the Office’s Business and Securities Fraud Section.

The Sentence

Simeon pleaded guilty to mail fraud in February 2023 and was ordered to pay over $200,000 in restitution as part of his sentence. The scheme, which ran from February 2019 to December 2020, netted Simeon over $350,000 from investors who were largely immigrants.

Quotes

“Simeon exploited the trust of his community by making false promises of substantial returns on investments,” said Breon Peace, United States Attorney for the Eastern District of New York. “This case serves as a warning to investors to be cautious of schemes that seem too good to be true.”

The Impact

Simeon’s victims suffered losses totaling over $200,000 due to his fraudulent activities. The case is a stark reminder of the importance of being vigilant when investing and not falling prey to false promises of high returns with little risk.

Conclusion

The United States Attorney’s Office for the Eastern District of New York will continue to aggressively prosecute cases of corporate financial fraud and protect investors from scams like Simeon’s.