DETROIT — Former FBI Special Agent Jeffrey Royer pleaded guilty to wire fraud in a foreign currency trading scheme that bilked investors out of hundreds of thousands of dollars, marking the second federal prosecution of a once-trusted law enforcement officer who previously served a multi-year prison sentence for racketeering and securities fraud.
Royer admitted he told investors their money would be used for commodity futures trading but fraudulently diverted a portion of investor funds for his own personal expenses, United States Attorney Jerome F. Gorgon, Jr. announced. Royer also admitted he falsely told investors their 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 fictitious monthly account statements showing that their investments were earning significant positive returns month after month when their investments were, in fact, suffering significant losses. As part of his plea agreement, Royer agreed to pay $576,818.83 in restitution 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.”
Runyan said she was grateful to the dedicated members of FBI Detroit for their work throughout the investigation. Royer also admitted that his conduct violated numerous regulatory requirements of the Commodity Exchange Act.
Royer’s criminal history predates the forex scheme by more than a decade. He 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.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Andrew J. Yahkind. Royer faces up to 20 years’ imprisonment. Sentencing is set for Sept. 3, 2026, before Judge Mark A. Goldsmith in the Eastern District of Michigan.