A couple of salespeople for a series of unregistered investment funds are pleading guilty to fraud charges in connection with a pre-IPO investment scheme.
On Tuesday in a federal court in New York, Enrico Carini and Caner Otar pleaded guilty to conspiracy to commit securities fraud for their involvement in the scheme, which falsely promised investors high returns from investing in private companies ahead of their public offerings. Carini also pleaded guilty to investment adviser fraud. Both were sales team leaders for Max Infinity Management LLC, Elder Fund Management LLC and a related series of funds
“Along with other company salespeople, Carini and Otar utilized scripts that falsely assured investors that the firm had an impressive track record of success in prior IPO deals when, in reality, Max Infinity had no such previous investments,” U.S. authorities alleged.
“In total, Max Infinity raised more than US$60 million from investors through false and misleading promises and high-pressure sales tactics,” they said.
Three other men were also charged in the scheme. Their trial is scheduled to start Jan. 12, 2026. The allegations against them have not been proven, and they are presumed to be innocent.
Earlier this year, the U.S. Securities and Exchange Commission (SEC) also filed civil charges against seven people (including Carini and Otar) and five companies, alleging that approximately US$70 million was raised from hundreds of investors between mid-2021 and April 2023 through the scheme, which allegedly paid large, undisclosed commissions to fund salespeople.
That action, which sought permanent injunctive relief, disgorgement, civil penalties and conduct-based injunctions against all of the defendants was stayed earlier this month, pending the outcome of the parallel criminal case and an ongoing grand jury investigation.