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Investment advisor admits part in Ponzi scheme

Eduardo Galan, 64, of Brockport, has pleaded guilty to mail fraud and money laundering before.
The combined charges carry a maximum penalty of 30 years in prison and a $500,000 fine.

Galan, according to Assistant U.S. Attorney John J. Field, was a registered securities broker who owned and controlled a financial services business, S&G Unlimited Services, in Brockport until October 2008 when he was barred from the industry.

From January 2008 to March 2013, Galan engaged in a Ponzi scheme. The defendant promised investors he would use their money to broker private mortgage transactions, but instead used it to repay earlier investors and cover personal and business expenses. In total, he defrauded 18 investors out of $821,912 before the fraud was discovered. As part of the plea deal, Galan also admitted he owes other clients money as well and agreed to pay the investment fraud victims and his other clients a total of $1,098,567.

Sentencing is scheduled for Sept. 2 before U.S. District Court Chief Judge Frank P. Geraci Jr.