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Massapequa resident Mark Lisser, 40, was charged with wire fraud for lying to investors and potential investors to induce them to invest in what they falsely believed were shares of several companies prior to the companies’ initial public offering.
Acting U.S. Attorney Seth DuCharme said that between October 2018 and January 2019, Lisser was a partner in Knightsbridge Private Parners, which operated a series of websites and call centers used to solicit investments in purported pre-IPO shares of burgeoning companies.
It is alleged that Lisser and other Knightsbridge employees ascertained investments by telling investors and potential investors that the company owned the shares it was selling, that Knightsbridge was on the capitalization table of the pre-IPO companies, and that Knightsbridge and its employees did not earn any commissions or fees until after the shares were issued to the public and the investor made money.
However, DuCharme said that the truth was the exact opposite: Knightsbridge did not directly own any of the pre-IPO shares, was not on the capitalization table of any of the pre-IPO companies, and Lisser and Knightsbridge employees received money and commissions from the investments at the time they were made.
During the fraud scheme, it is alleged that Lisser misappropriated more than $700,000 from investors that were used to make payments to companies controlled by Knightsbridge employees, pay salaries and sales commissions, pay his personal credit card bill and make payments on a mortgage.
“As alleged, Lisser convinced investors to trust him with their money by lying about what he was selling and how much of it he would keep for himself,” DuCharme said. “We and our law enforcement partners will continue to vigorously investigate and prosecute those who abuse the trust of investors in order to enrich themselves.”
Lisser, 40, was arrested on Tuesday, Dec. 1, and made his first court appearance in Central Islip federal court. If convicted, Lisser faces up to 20 years in prison.
“As an investment firm partner, Lisser encouraged his victims to purchase pre-IPO shares of companies that weren’t his to sell, as we allege today,” FBI Assistant Director-in-Charge William Sweeney said.
“He purportedly used this money to make illegitimate payments, fund salaries, and satisfy his monthly mortgage payments,” he added. “Padding one’s pockets at the expense of others isn’t only a bad way to do business, it’s a federal crime.”
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