2 Investment Fund Manager Sales Team Leaders Plead Guilty to Pre-IPO Fraud Scheme

BROOKLYN, New York, Aug. 28 -- The office of the U.S. Attorney for the Eastern District of New York posted the following news release on Aug. 26, 2025:

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Two Investment Fund Manager Sales Team Leaders Plead Guilty to Pre-IPO Fraud Scheme

Defendants Helped Raise More Than $60 Million from Investors Based on a Series of Lies

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Earlier today, in federal court in Brooklyn, Enrico Carini, also known as "Ed," pleaded guilty to conspiracy to commit securities fraud and investment adviser fraud in connection with his role in a multi-million dollar investment fraud scheme. Co-defendant Caner Otar, also known as "John," pleaded guilty to conspiracy to commit securities fraud on August 25, 2025 in connection with his role in the same scheme. Both proceedings were held before United States District Judge Carol B. Amon. When sentenced, Carini faces a maximum sentence of 10 years' imprisonment, restitution, and forfeiture of cash and assets collectively valued at more than $430,000, including several luxury watches. Otar faces a maximum sentence of five years' imprisonment, restitution, and $400,000 in forfeiture.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the guilty pleas.

"Protecting investors from fraudulent schemes is a core mission of our Office," stated United States Attorney Nocella. "These defendants used a series of lies to entice unsuspecting investors, and to enrich themselves and their co-conspirators along the way. As demonstrated by these guilty pleas, our Office will uncover and vigorously prosecute fraudulent schemes that undermine the market for private securities."

Mr. Nocella expressed his appreciation to the Securities and Exchange Commission (SEC), Washington, D.C. Home Office, for its significant cooperation and assistance during the investigation.

"Carini, Otar, and others at Max Infinity swindled more than $60 million from investors to divert towards personal finances," stated FBI Assistant Director in Charge Raia. "Along with other conspirators, these defendants actively manipulated their clients through rehearsed lies of reassurances and success to generate an unlawful investment stream. The FBI remains determined to protect the integrity of our city's economic infrastructure and investors from fraudulent tactics."

As set forth in court filings and facts presented during the plea hearing, Carini and Otar were sales team leaders for Max Infinity Management LLC, Elder Fund Management LLC, and a related series of funds (Max Infinity). Max Infinity wasa New York City-based manager of investment funds that purported to buy and sell stock issued by privately held companies that anticipated an initial public offering (IPO), including well-known companies like Stripe, Chime, Instacart, and Flexport. Carini and Otar made numerous misstatements to Max Infinity investors, including by falsely representing that they did not make money on investments until investors profited, when in fact they received commissions on each investment they solicited. Carini and Otar also falsely represented to investors that the company and its investment funds were registered with the SEC. 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. In total, Max Infinity raised more than $60 million from investors through false and misleading promises and high-pressure sales tactics.

Charges against Carini and Otar's co-defendants remain pending. Trial for the co-defendants is scheduled for January 12, 2026. They are presumed innocent unless and until proven guilty.

The government's case is being handled by the Office's Business and Securities Fraud Section. Assistant United States Attorneys Sarah M. Evans, Eric Silverberg, Lorena Michelen, and Nicholas M. Axelrod are in charge of the prosecution, with assistance from Paralegal Specialists Liam McNett and Timothy Migliaro.

Defendants Who Pleaded Guilty:

* ENRICO CARINI (also known as "Ed")

Age: 40

Staten Island, New York

* CANER OTAR (also known as "John")

Age: 38

Brooklyn, New York

Co-Defendants Awaiting Trial:

* JOHN CANGIALOSI

Age: 44

Manalapan, New Jersey

* PETER GIRGIS

Age: 44

Staten Island, New York

* GENE SARABELLA (also known as "Jerry")

Age: 37

Monroe, New Jersey

E.D.N.Y. Docket No. 24-CR-363 (CBA)

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Original text here: https://www.justice.gov/usao-edny/pr/two-investment-fund-manager-sales-team-leaders-plead-guilty-pre-ipo-fraud-scheme