$2.8M Securities Fraud Nets Prison Sentence For Red Bank Man

NEWARK, NJ — Mark Marchi of Red Bank has been sentenced to 63 months in prison for committing securities fraud to obtain over $2.8 million from victim investors, U.S. Attorney Philip R. Sellinger said Friday.

Marchi, 55, previously pleaded guilty before U.S. District Court Judge Claire C. Cecchi to an accusation charging him with one count of securities fraud. Cecchi imposed the sentence on Wednesday, Jan. 4, in Newark federal court.

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

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

Marchi, who was previously barred from the securities industry, claimed to provide investment adviser services to clients, the U.S. Attorney's office said in a news release on the sentencing.

Beginning in December 2015, Marchi managed and controlled Precipio Capital LLC, after previously managing and controlling 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 into Precipio, the U.S. Attorney's office said in the news release.

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 own 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, the news release said.

Marchi also provided victims with falsified records, including trading records, performance reports, and K-1s, according to the U.S. Attorney's office.

Sellinger credited the special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark. Defense counsel is John T. Doyle Esq., Newark.