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Disgraced FBI agent Jeffrey Royer recently pleaded guilty in federal court in Detroit to defrauding investors through a foreign currency trading scheme. As part of his plea, Royer agreed to pay $576,818 in restitution to victims. This marks his second prosecution for fraud, as he previously served six years in prison after a 2006 conviction for stealing confidential law enforcement information while an FBI agent.
Disgraced FBI Agent Jeffrey Royer Pleads Guilty In Detroit To Defrauding Investors In Second Prosecution For Fraud
Disgraced FBI agent Jeffrey RoyerDisgraced FBI agent Jeffrey Royer pleaded guilty Monday in federal court in Detroit to defrauding investors in Michigan and elsewhere through a foreign currency trading scheme. As part of his plea, he agreed to pay $576,818 in restitution to victims.
FBI Bureau Chief Jennifer Runyan told the media:
It wasn’t the first prosecution for the disgraced FBI agent. Royer served as an FBI agent from 1996 to 2001 in Oklahoma and later in Gallup, N.M.
The federal court sentenced the disgraced FBI agent to six years in prison in 2006. He was released in 2012.
Disgraced FBI Agent Pleads Guilty To Fraud
At the time, authorities alleged that he used his position as an FBI agent to steal confidential law enforcement information about companies under investigation by the FBI and the Securities and Exchange Commission. He then passed the information to a short seller in exchange for the promise of cash and future employment.
Using the confidential information, the trader established short positions in the stocks of companies under investigation. A short seller bets that a stock’s price will go down.
In the latest case, authorities alleged that from 2020 to 2023, Royer met with investors at places such as a union hall in Livonia and a cabin in Clarkston. He told them their money would be invested in his forex account.
He suggested investors could achieve returns of 10% per month.
Royer admitted to authorities that he fraudulently diverted a portion of investor funds for his own personal expenses. He also admitted to lying by telling investors their principal was protected against loss.
He also misled investors by providing fictitious monthly account statements. These statements showed that their investments were earning significant returns month after month when, in fact, they were suffering substantial losses, authorities said.
After investors lost their money, Royer told investors he would make them whole again. However, he never did.
The disgraced FBI agent faces up to 20 years in prison when he’s sentenced on September 3rd.
