'The Bible' Sales Script and $46 Million in Hidden Markups: Pre-IPO Boiler Room Operators Sentenced in Manhattan

Published Oct. 6, 2026. Case statuses are current as of that date.

Three men who ran a Manhattan "boiler room" selling shares in companies that had not yet gone public have been sentenced to federal prison for defrauding investors, the U.S. Attorney's Office for the Southern District of New York announced on Sept. 30, 2026 [1]. Mario Gogliormella, 49, of Manhasset, New York, received 52 months; Steven Lacaj, 29, of New York, New York, and Karim Ibrahim, 36, of Queens, New York, also known as "Chris Hayes," each received 42 months [1].

All three pleaded guilty before U.S. District Judge Vernon S. Broderick, who sentenced Gogliormella on Sept. 16, Lacaj on Sept. 23 and Ibrahim on Sept. 30 [1]. These are convictions, not pending accusations. The case is USA v. Gogliormella, et al., No. 1:24-cr-362 [2].

How the scheme worked

According to the indictment, public filings and statements in court as summarized by prosecutors, the defendants marketed a group of private funds known as the "StraightPath Funds" and the "Legend Funds" to non-professional investors [1].

1. The pitch. Investors were offered the chance to buy shares in "pre-IPO" companies at favorable prices before an expected public offering, when the shares would supposedly be worth much more [1].
2. The "no fees" promise. The defendants claimed there were no upfront fees or commissions and that they would not get paid until investors got paid. Prosecutors say those representations "were lies" [1].
3. The hidden markup. Shares were sold to investors at "arbitrarily inflated and excessive prices" without disclosing the markup. The scheme raised about $185 million from hundreds of investors; prosecutors say the defendants diverted nearly $28 million to themselves and paid sales representatives at least $17.5 million in fees and commissions [1]. Hoodline, citing the U.S. Attorney's Office, reported that the markups ranged from 19% to 105% [3].
4. The call center. Salespeople cold-called potential investors, many of them inexperienced, using pitch scripts the defendants called "The Bible." Referral agents typically received a 10% to 15% front-end fee on the money they brought in, plus a share of carried interest [1].
5. Hidden histories. Prosecutors say the defendants hid the involvement of Gogliormella and Ibrahim, who had previously been disciplined by the Financial Industry Regulatory Authority (FINRA), in managing the funds [1].

The scheme began as a marketing arm for StraightPath Venture Partners. After StraightPath ceased operations in about February 2022, following SEC subpoenas, the three men continued the same scheme under Legend Venture Partners LLC, according to prosecutors [1].

"By charging undisclosed markups of over a hundred percent and pretending their own disciplinary histories didn't exist, the defendants ... stole from hundreds of investors and undermined the functioning of markets that are vital to innovation and growth," U.S. Attorney Jamie McDonald said [1].

The people sentenced

Mario Gogliormella, 49, Manhasset, N.Y. Pleaded guilty; sentenced Sept. 16, 2026, to 52 months in prison and three years of supervised release; ordered to pay $46 million in restitution and forfeit $12.4 million [1].

Steven Lacaj, 29, New York, N.Y. Pleaded guilty; sentenced Sept. 23, 2026, to 42 months and three years of supervised release; $46 million restitution and $7.7 million forfeiture [1].

Karim Ibrahim (aka "Chris Hayes"), 36, Queens, N.Y. Pleaded guilty in January 2026, according to Inner City Press; sentenced Sept. 30, 2026, to 42 months and three years of supervised release; $46 million restitution and $8.3 million forfeiture [1][2]. Inner City Press reported that his lawyers had asked for a sentence of a year and a day [2].

The three principals of StraightPath, Michael Castillero, Brian Martinsen and Francine Lanaia, were prosecuted separately by the same office, convicted at trial in November 2025, and sentenced in May 2026 to 11, 10 and 8 years, respectively, according to prosecutors [1].

The StraightPath and Legend entities and funds are no longer operating and are under the control of a court-appointed receiver tasked with returning value to investors. The SEC has filed a parallel civil action [1]. The U.S. Postal Inspection Service investigated [1].

Red flags

The SEC's investor education office lists warning signs that match this case [4]:

• Cold calls and aggressive sales pressure offering "ground floor" access to a hot private company.
• "We don't make money until you do." The SEC warns that pre-IPO fraudsters may "falsely claim that they won't make money until you make money" [4].
• Claims that an IPO is "imminent" or will happen "this year" [4].
• Unregistered or previously disciplined salespeople. In this case, prosecutors say the disciplinary histories of two principals were hidden [1].
• No clear explanation of the price you are paying compared with what the fund paid for the shares.

What to do if you're targeted

1. Check the seller on FINRA BrokerCheck and the SEC's Investment Adviser Public Disclosure site before investing.
2. Ask in writing what the fund paid for the shares, what markup and fees apply, and who manages the fund.
3. Say no to phone pressure. A legitimate offer will still be there after you have read the documents and talked to an independent adviser.
4. Already invested? Keep every document and report concerns to the SEC at sec.gov/tcr. If you invested in a StraightPath or Legend fund, follow the court-appointed receivership for updates on recoveries [1].

Case status (as of Oct. 6, 2026)

Defendant	Court	Status as of Oct. 6, 2026	Source
Mario Gogliormella, 49, Manhasset, NY	Federal, S.D.N.Y. (1:24-cr-362)	Pleaded guilty; sentenced Sept. 16, 2026, to 52 months; $46M restitution; $12.4M forfeiture	[1]
Steven Lacaj, 29, New York, NY	Federal, S.D.N.Y. (1:24-cr-362)	Pleaded guilty; sentenced Sept. 23, 2026, to 42 months; $46M restitution; $7.7M forfeiture	[1]
Karim Ibrahim (aka "Chris Hayes"), 36, Queens, NY	Federal, S.D.N.Y. (1:24-cr-362)	Pleaded guilty; sentenced Sept. 30, 2026, to 42 months; $46M restitution; $8.3M forfeiture	[1], [2]
Michael Castillero; Brian Martinsen; Francine Lanaia (StraightPath)	Federal, S.D.N.Y. (separate case)	Convicted at trial Nov. 2025; sentenced May 2026 to 11, 10 and 8 years	[1]

Statuses can change, including on appeal.

Sources

1. U.S. Attorney's Office, Southern District of New York, "'Pre-IPO' Boiler Room Operators Sentenced To Prison," Sept. 30, 2026. https://www.justice.gov/usao-sdny/pr/pre-ipo-boiler-room-operators-sentenced-prison
2. Matthew Russell Lee, "For StraightPath Funds Fraud Ibrahim Gets 42 Months in Prison in SDNY," Inner City Press, Sept. 30, 2026. https://innercitypress.com/sdny122broderickibrahimicp093026.html
3. Bryce Winslow, "Manhattan Pre-IPO Fraudsters Get Prison Time After $185M Boiler Room Scheme," Hoodline, Oct. 1, 2026. https://hoodline.com/2026/10/manhattan-pre-ipo-fraudsters-get-prison-time-after-185m-boiler-room-scheme/
4. U.S. Securities and Exchange Commission, Investor.gov, "Pre-IPO Investment Scams," accessed Oct. 6, 2026. https://www.investor.gov/protect-your-investments/fraud/types-fraud/pre-ipo-investment-scams

---

Corrections and updates: If you are named in this article, or represent someone who is, and believe anything here is inaccurate or out of date (including a dismissal, acquittal, or change in case status), please contact us at editorandchief@scammers.com. We will review it and update the article promptly.