Langhorne Man Accused of Stealing $3 Million From Clients

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Federal prosecutors said Wednesday they’re bringing charges against Malcolm Segal — a 69-year-old from Langhorne, Pennsylvania — whom they say stole over $3 million from clients while he worked as a financial advisor at Aegis Capital Corporation.

A public statement on the U.S. Justice Department’s website revealed today that Segal faces nine counts of fraud — six of mail fraud and three of wire fraud — for allegedly stealing the money of individuals who invested with him, thinking they were receiving Certificates of Deposit (CDs), and from others who held cash in brokerage accounts at Aegis.

According to prosecutors:

Over a period of three years from July 2011 to July 2014, Segal told a client that two investment banks — Mercantile Bank and Bear Stearns — were offering CDs with up to 12 percent interest rates on a minimum two-year investment of 100,000 dollars. Segal also told individual investors that he could sell them CDs through his company, Aegis. He accepted a minimum of 100,000 dollars each from six people, misrepresented his use of the money, sent the victims fake deposit confirmations through a CD sales firm that he owned, and mailed the individuals checks, which he allegedly said were interest payments.

He reportedly used the stolen dough to pay off both personal expenses and other investors. In total, from those six victims, he stole $1,885,067.10 in net gain after he mailed out the alleged interest payments. In addition, Segal allegedly took $1,218,183.60 from the Aegis brokerage accounts of three other investors by wiring the funds into a personal account in the name of another self-owned business.

If Segal is convicted of any or all of these charges, he could face between 57 and 71 months in prison, with a maximum sentence of 180 years

Assistant U.S. Attorney Joel Goldstein is prosecuting the case, which was investigated by the FBI and the U.S. Postal Inspection Service.

Read the indictment release below:

Indictment – Segal, Malcolm by PhiladelphiaMagazine