Francius Marganda, Leader of International Ponzi Scheme Targeting Indonesian-American Community, Sentenced to 18 Years in Prison

On Thursday, at a federal courthouse in Brooklyn, Francius Marganda was sentenced by United States District Judge Dora L. Irizarry to 18 years’ imprisonment for running a $24.5 million Ponzi scheme that defrauded hundreds of predominantly Indonesian and Indo-American victim investors. 

Marganda, an Indonesian national, led the scheme until it unravelled in 2021, when he fled the United States. 

Marganda was extradited to the United States from Singapore in November 2023 and pleaded guilty to securities fraud in July 2024. As part of his sentence, Marganda was ordered to pay $8.5 million in restitution and $7.5 million in forfeiture.

From May 2019 to May 2021, while residing in New York after overstaying his visa, Marganda orchestrated a scheme to defraud investors by soliciting investments in two sham programs called Easy Transfer and Global Transfer, which Marganda and his co-conspirators falsely represented were short-term, high-interest loan programs in which investors would earn passive income. 

Marganda and his co-conspirators promised rates of return as high as 200 per cent or more.  On a near-daily basis, multiple investors were deceived into signing investment contracts.   

Marganda and his co-conspirators misappropriated the invested funds for their own benefit, including by buying real estate and luxury goods and paying off credit card bills.  They also laundered proceeds into their bank accounts. 

For example, more than $3.8 million in scheme proceeds was transferred into just one of Marganda’s personal accounts over 11 months, and more than $264,000 in proceeds in the account was used to pay off his credit card bills.

The Ponzi scheme ultimately collapsed in May 2021 when Marganda and his co-conspirators stopped making payments to investors. 

Marganda fled the United States, obtained an Indonesian passport under a fake name, and used the scheme funds to pay for lavish stays in luxury hotels around the world, including in France, the Maldives, Nepal, and Thailand, until he was apprehended abroad and extradited to the Eastern District of New York.

To date, 237 victims, ranging in age from 24 to 84, have identified losses of more than $24.5 million because of the defendant’s scheme. 

The victims reside in the District of Columbia and at least 31 states, including New York, as well as in Indonesia and Malaysia.  Many victims had limited means and had pooled their resources with relatives and friends to invest in U.S. dollars and Indonesian rupiah.

Judge Irizarry considered statements prepared by dozens of victims in connection with the sentencing hearing held earlier Thursday. Many reported that, due to the defendant’s conduct, they declared bankruptcy or lost nearly all their savings. 

Because of the financial loss, one victim struggled to pay for a family member’s chemotherapy, while another struggled to pay for medical expenses associated with a family member’s Stage 4 lung cancer diagnosis. 

One victim lacked the funds to travel and pay respects after both of the victim’s parents died. Multiple victims suffered other serious losses and hardships.