DANBURY, Conn. — A 23-year-old Danbury man who claimed on his LinkedIn page that he would "buy and sell products one by one for a great mark up" to make money for himself and others was sentenced Wednesday to two years in prison for stealing over $280,000 from people who invested in his Internet business.
Alexander Bergen, a former Bethel resident, was sentenced to two years in prison, followed by three years of supervised release, by U.S. District Judge Vanessa L. Bryant in Hartford, said U.S. Attorney for Connecticut Deirdre M. Daly.
Bryant also ordered Bergen to pay restitution in the amount of $282,609.71.
According to court documents and statements made in court, Bergen operated CT Wholesale, a company that sold electronic equipment and other items by buying the product for a cheaper price and then reselling those products to the customer at a higher price.
Beginning in about 2013, Bergen began to accept funds from people who were promised a return on their investments. He told the investors that he would use their funds solely to purchase products for resale and that the investors would receive their principal investment back with a profit in a specified period of time.
In some cases, he entered into written investment agreements with investors stating that.
Bergen received a total of more than $300,000 from about 10 investors. But he did not use these funds solely to purchase products. In 2013, Bergen used about $150,000 of the investors’ money to pay for his personal credit card bills, which included personal expenses for fine dining, travel, and to shop at high-end retail stores.
He returned less than $40,000 in funds to his investors.
On Aug. 3, 2015, Bergen pleaded guilty to one count of interstate transportation of money obtained by fraud. He has been detained since March 7, 2016, after he violated the conditions of his release pending sentencing and his bond was revoked.
The case was investigated by the FBI, with the assistance of the Bethel and Greenwich Police Departments. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.