DETROIT – Former FBI Special Agent Jeffrey Royer pleaded guilty today to defrauding investors in a foreign currency (“forex”) trading scheme, United States Attorney Jerome F. Gorgon, Jr. announced.
Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation.
Royer pleaded guilty to a charge of wire fraud and admitted that he defrauded multiple third-party investors. Royer acknowledged that while he told investors their money would be used for commodity futures trading, he fraudulently diverted a portion of investor funds for his own personal expenses. Royer also admitted he fraudulently told investors that their investment principal was protected against loss and that set future earnings would occur. After suffering significant trading losses, Royer repeatedly lied to his investors and provided them with fictious monthly account statements showing that their investments were earning significant positive returns month after month when their investments were, in fact, suffering significant losses. Royer also admitted that his conduct violated numerous regulatory requirements of the Commodity Exchange Act.
As part of his plea agreement, Royer has agreed to pay restitution of $576,818.83 to his victims.
“Investment fraud is theft, and no one, including a former FBI Special Agent is entitled to a different set of rules,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “The defendant betrayed the trust of investors, concealed the truth, and caused significant financial harm through a fraudulent foreign currency trading scheme. Today’s plea holds him accountable for those actions. I am grateful to the dedicated members from FBI Detroit for their diligent work throughout this investigation.”
Royer was released from the Federal Bureau of Prisons in 2012 after serving a multi-year prison sentence for racketeering conspiracy, securities fraud conspiracy, securities fraud, obstruction of justice, and witness tampering. Those charges stemmed from Royer’s corrupt use of his position as an FBI agent to steal confidential criminal law enforcement information about companies under investigation by the FBI and the Securities and Exchange Commission. Royer passed that confidential information along to a “short seller” trader in exchange for the promise of cash and future employment. Using the confidential information provided by Royer, that trader established short positions in the stocks of companies under investigation.
Sentencing is set for September 3, 2026, before Judge Mark A. Goldsmith. Royer faces up to 20 years’ imprisonment.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Andrew J. Yahkind.
Source: U.S. Attorney’s Office — Eastern District of Michigan — U.S. Department of Justice press release.