Haverhill Hustler Blew $625K, Lied to Investors

Luciano Schipelliti, a 28-year-old Haverhill resident, is facing a potential decade-plus stretch in federal prison after admitting to fleecing investors out of over $625,000 through a pair of cryptocurrency schemes. The feds allege Schipelliti wasn’t investing the money, he was *spending* it – on high-risk crypto gambles and a lavish lifestyle fueled by other people’s hopes of quick returns. This wasn’t some sophisticated Wall Street maneuver; it was a classic bait-and-switch, a digital-age Ponzi scheme preying on the crypto boom’s naive investors.

Schipelliti’s con began in 2018 with the “Superstars Fund.” He pitched the fund to investors, promising consistent growth through savvy cryptocurrency trading. He hauled in roughly $275,000, but by 2019, the money was gone – vaporized. Instead of coming clean, Schipelliti allegedly fabricated monthly reports, sending them to investors to maintain the illusion of profitability. These reports were pure fiction, designed to keep the cash flowing in while he covered his tracks. This is a common tactic among fraudsters, extending the lifespan of the scheme by creating a false sense of security.

Undeterred, and apparently lacking any remorse, Schipelliti launched a second fund in 2019, the “TTM Fund.” He repeated the pitch, and investors, perhaps lured by the initial (falsely reported) success of the Superstars Fund, ponied up another $350,000. The pattern repeated itself with terrifying predictability. By September 2021, the TTM Fund was also drained. Federal investigators say the bulk of the funds were lost on reckless cryptocurrency speculation – essentially, Schipelliti was gambling with other people’s money – with a significant portion diverted for personal expenses, the details of which are still being investigated.

According to charging documents, Schipelliti isn’t accused of simply mismanaging funds. The feds allege a deliberate scheme to defraud, using wire communications to solicit investments under false pretenses. Wire fraud carries a maximum sentence of 20 years in prison, a $250,000 fine, and a period of supervised release following incarceration. While sentencing guidelines consider numerous factors, including the amount of money involved and the defendant’s criminal history, a significant prison term is highly probable given the scale of the alleged fraud and the deliberate deception involved.

The case was built by the FBI, with Special Agent in Charge Ted E. Docks leading the investigation. Agents traced the flow of funds, uncovering the discrepancy between the reported investment performance and Schipelliti’s actual spending. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case, signaling the feds are taking white-collar crime seriously, especially in the volatile cryptocurrency space. The investigation highlights the growing number of scams exploiting the public’s interest in digital assets.

Schipelliti has agreed to plead guilty to one count of wire fraud, a significant step that suggests he’s attempting to mitigate the damage and potentially secure a more lenient sentence. However, a guilty plea doesn’t guarantee leniency. The judge will still consider the severity of the offense, the impact on the victims, and Schipelliti’s overall character before handing down a sentence. This case serves as a stark warning: the lure of quick riches in the cryptocurrency world is often a trap, and those who prey on investors will face the full weight of federal prosecution.

Victims of the alleged scheme are unlikely to recover their full investments. Recovering assets in these types of cases is notoriously difficult, especially when funds have been lost through speculative investments or spent on personal items. The feds will attempt to seize any remaining assets, but it’s a long shot. This leaves investors facing substantial financial losses, a bitter lesson in the risks of unregulated investment schemes.

This isn’t an isolated incident. Federal prosecutors are currently handling a surge in cryptocurrency-related fraud cases, from pump-and-dump schemes to outright theft. Just last month, executives at an Edison company admitted to a PPE scam, and a New York valet swindler received a 37-month sentence. The common thread? Opportunistic criminals exploiting vulnerabilities in emerging markets, and the feds are determined to hold them accountable.

Source: U.S. Department of Justice