A former New York police officer admits to being involved in a fraud scheme related to foreign exchange funds.

• Jason Rodriguez, a former New York City police officer, pleaded guilty to conspiring to commit wire fraud in connection with his foreign exchange investment fund, according to prosecutors.
• The forex investment fund Technical Trading Team, led by CEO Edwin Carrion and Rodriguez, suffered significant losses, with most of the $4.8 million invested being lost.
• Previous court records show that Carrion pleaded guilty to the scheme in January.

On Thursday, prosecutors announced that former New York City police officer Jason Rodriguez pleaded guilty to wire fraud conspiracy in connection with his position as the chief operating officer of a foreign exchange investment fund.

In February, Rodriguez, 38, was indicted in a Brooklyn federal court for lying to investors and losing most of the $4.8 million invested in his forex investment fund, Technical Trading Team. To date, approximately $3.5 million of those funds have not been paid back to the investors, according to the U.S. Attorney's Office for the Eastern District of New York.

"According to Breon Pace, United States attorney for the Eastern District of New York, the defendant misled retail investors into investing in his company by making false promises about investing their money according to clear guidelines and his successful career as a trader. However, in reality, there were no guidelines, he resigned from the NYPD due to disgrace, and he lost most of the money, causing significant harm to his victims."

Rodriguez assured investors that he could pay them back through a "loss reserve account" if the company lost money, and he wouldn't risk more than 1% of assets under management on a single trade, even though he falsely claimed that he could pay them back.

Rodriguez misappropriated hundreds of thousands of dollars and used the money for luxury car rentals, travel, and other expenses, according to Peace's statement in February following the indictment.

Rodriguez, who had been an NYPD officer for seven years, pleaded guilty to a misdemeanor crime and resigned. Later, in 2020, he founded the TTT fund with CEO Edwin Carrion.

In January, Carrion pleaded guilty to the scheme, but has not been sentenced yet.

In 2023, the Commodity Futures Trading Commission filed a lawsuit against TTT, Rodriguez, and Carrion in Brooklyn federal court, alleging that they made "false and misleading statements about their investment track record and the safety of investing in the TTT pool to participants and potential participants."

Rodriguez and Carrion promised investors they could recover their $3 million loss through AI-based trading algorithms, but the complaint alleges they failed to deliver on this promise.

In March, District Judge Ramon E. Reyes, Jr. ordered a stay of the suit.

— CNBC's Dan Mangan contributed to this report.