New York (HedgeCo.net) – The former owner and president of New York Financial Co. (NYFC) was sentenced yesterday to 132 months in prison for his role in a $1.6 million investment fraud scheme. In addition to the prison term, the Judge sentenced Sucarato to three years supervised release and ordered him to pay $1,165,280.04 in restitution.
Robert Sucarato, 42, of Holmdel, N.J., previously pleaded guilty before a U.S. District Judge to one count of wire fraud.
“Sucarato’s NYFC was purportedly a capital management and financial consulting firm with offices in New York City and Chicago.” Documents filed in this case reported. “Sucarato admitted he had established a “virtual office” in New York, which allowed him to claim a prestigious mailing address. The office space, conference rooms, and receptionists were shared with many other companies for a nominal rent.”
“Sucarato misrepresented that NYFC was registered as an investment advisor and portfolio manager; misrepresented his educational and professional background; falsely listed certain individuals as officers and managers of NYFC who were not; and otherwise created the false impression that NYFC was a successful, well-established and “leading capital management and financial consulting firm … with offices in New York and Chicago,” with superior management and a staff of “over 20 experienced traders.” The court heard.
Sucarato established two hedge funds – the NYFC Strategic Fund and the NYFC Diversified Strategic Fund. Sucarato admitted that he solicited investors through his website, falsely claiming that he had over $7.2 billion in assets under management. Sucarato created a false audit report, purportedly prepared by a major accounting firm, which falsely indicated that NYFC had a net worth of $798 million.
Investors provided Sucarato with more than $1.6 million. He deposited victims’ investments in bank accounts he controlled, and then transferred the victims’ money between those bank accounts so that he could use the money for personal expenses. Sucarato spent the investors’ money at various retail establishments, including Macy’s, Vermont Teddy Bear and L.L. Bean.
Alex Akesson
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