Glen Head Man Accused Of Defrauding Investors Out Of $100K

A commodity pool operator from Glen Head faces several charges in connection to defrauding investors and attempting to obstruct justice, the United States Attorney for the Eastern District of New York said on Monday.

Harris Landgarten, 66, pleaded not guilty on Monday to commodities fraud, wire fraud and attempting to obstruct an official proceeding by the Commodity Futures Trading Commission (the “CFTC”). He was arrested on Saturday.

Landragten was released on a $200,000 bond and faces a maximum sentence of 25 years’ imprisonment if convicted.

“Mr. Landgarten devised an audacious scheme to swindle his clients who placed their trust in him, then further victimized an investor by allegedly only returning funds if a complaint against him was withdrawn, a classic case of greed to fund his own personal lifestyle,” United States Postal Inspection Service Inspector-in-Charge Peter R. Rendina said in a press release. “Postal Inspectors will never tolerate abuse of the public trust, and will bring those to justice who violate the laws that protect the investing public.”

Officials say from July 2014 to March 2014, Landgarten spent more than $100,000 in money he stole from a commodity pool he operated called Tradeanedge Members Fund, L.P. The fund’s three investors invested a total of approximately $150,000.

Landgarten would prepare and send the investors balance statements that hid the fact that he had spent most of the investors' money on personal expenses such as a home security alarm, cable television and internet service, cell phone, online book subscription and $1,250 monthly payments to himself, officials say.

Once the CFTC initiated an investigation, officials say Landgarten pressured a defrauded investor to submit a false statement to the CFTC and to withdraw the complaint that was filed with the agency. Landgarten conditioned the return of what remained of the investor’s money upon the investor’s withdrawal of his complaint, officials say.

“As alleged in the indictment, Landgarten defrauded commodities investors by using their money to pay personal bills, and then compounded his crime by pressuring a victim investor to lie in an attempt to make the investigation go away,” United States Attorney Richard P. Donoghue said.

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