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Razor FX, a foreign-currency exchange firm run by Michael Richard MacCaull only pretended to trade in the foreign exchange market on behalf of investors.

01/16/08 - Brooklyn Daily Eagle

Michael Richard MacCaull, who had already served time in prison for his involvement in a securities fraud scheme in the late 90s, was arrested again yesterday at his luxurious Long Island apartment. He was arraigned on charges of mail- and wire-fraud conspiracy, and could face 20 more years in prison.

MacCaull, 36, was arraigned yesterday in Brooklyn Federal Court. He and another man operated Razor FX, a foreign-currency exchange firm that only pretended to trade in the foreign exchange market on behalf of investors, according to the U.S Postal Service inspector who investigated the case.

The other man who conspired with MacCaull is only referred to as a "confidential source" in the arrest warrant documents, but on the Razor FX site, the president of the corporation is listed as Bradley Eisner.

According to the affidavit of the postal-service inspector, the confidential source admitted to the fictitious dealings that Razor FX engaged in, which defrauded investors out of millions of dollars.

The confidential source also set up a telephone conversation with MacCaull that was secretly recorded by authorities. During that phone call on Thursday, MacCaull and the confidential source discussed specifics on fraudulent schemes, according to the affidavit.

MacCaull also allegedly discussed the possibility of flight, yet told the confidential source that if the two of them were to get into any legal trouble, then he would accept all the blame, because he knows that the confidential source has a wife and kids. It appears that MacCaull will be accepting all the blame anyway, as the confidential source will not face any charges in this case.

MacCaull, whose previous prison sentence was for 15 months, told the confidential source on the phone that if they were arrested, they were not facing a mere 15 months in prison but rather seven years behind bars, according to the affidavit. When the confidential source suggested they turn themselves into the police, MacCaull allegedly told him that doing so would only reduce their prison sentence by one year.

"Admitting gets you nothing." MacCaull allegedly told him.