A 69-year-old Florida man, JOHN A. MASANOTTI, JR., is facing 21 counts of investment fraud after allegedly swindling at least 10 victims out of more than $4 million.
The indictment, returned on May 7, 2024, stems from an alleged investment scheme that began in 2016 and continued until 2023, according to the Department of Justice. Masanotti, a former Connecticut resident, claimed to manage a pooled investment vehicle on behalf of investors, promising them high returns.
However, instead of investing their money, Masanotti allegedly used it for personal expenses and to pay returns to other clients, providing them with fake monthly account statements to cover his tracks. He also made false statements to the FBI during the investigation and filed false records in an attempt to obstruct the probe.
The indictment charges Masanotti with eight counts of wire fraud, 11 counts of making illegal monetary transactions, one count of making false statements, and one count of falsification of records in a federal investigation. If convicted, he faces up to 20 years in prison on each wire fraud count and up to 10 years on each count of making illegal monetary transactions.
Masanotti was arrested today and appeared in federal court in Fort Myers, Florida, where he was released on a $100,000 bond. He is scheduled to be arraigned in Hartford federal court on May 15.
The investigation leading to the indictment involved the Federal Bureau of Investigation, the Internal Revenue Service, the U.S. Postal Inspection Service, and the U.S. Securities and Exchange Commission.
Masanotti’s scheme highlights the importance of doing your due diligence when investing in the stock market or with any investment advisor. If you think you may have been a victim of Masanotti’s scheme, contact the authorities immediately.
The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.
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Key Facts
- State: Connecticut
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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