Haverhill Crypto Hustler Admits $700K Investor Scam

Luciano Schipelliti, a 28-year-old Haverhill resident, is facing a potential decade-plus prison sentence after agreeing to plead guilty to defrauding investors out of $700,000 through two spectacularly failed cryptocurrency investment funds. The scheme, built on lies and fueled by reckless trading, left a trail of ruined finances and shattered trust, according to federal prosecutors.

Schipelliti launched his first venture, the Superstars Fund, in late 2018, capitalizing on the rampant speculation surrounding cryptocurrency. He pitched the fund to investors promising substantial returns, attracting roughly $275,000. But instead of employing sound investment strategies, the feds allege Schipelliti plunged the funds into a series of increasingly desperate and losing trades. By 2019, the Superstars Fund was bled dry, but Schipelliti didn’t admit failure. Instead, he allegedly fabricated monthly reports, painting a false picture of success to keep investors hooked and, crucially, to lay the groundwork for a second scam.

Undeterred by the collapse of his first fund, Schipelliti launched the TTM Fund in February 2021. Leveraging the bogus positive reports from the Superstars Fund, he convinced investors to hand over another $350,000. The pattern repeated itself with chilling predictability. Within seven months, the TTM Fund also evaporated, victims of Schipelliti’s continued reckless trading and, according to prosecutors, personal spending that directly violated the fund’s stated investment guidelines. Sources close to the investigation suggest the funds were used for lavish personal expenses, though specifics remain sealed.

The charges against Schipelliti center around a single count of wire fraud, a federal felony. Wire fraud occurs when someone intentionally deceives another to obtain money or property through electronic communication – in this case, the fabricated investment reports sent to investors. The potential penalty is severe: up to 20 years in federal prison, a substantial fine, and a period of supervised release following incarceration. Sentencing guidelines will likely consider the amount of money stolen and the number of victims involved, potentially increasing the final sentence.

“This wasn’t just bad investing; it was a deliberate scheme to defraud,” stated US Attorney Leah Foley in a brief statement. “Mr. Schipelliti intentionally misled investors, enriching himself at their expense.” FBI Special Agent in Charge Ted Docks added, “The FBI is committed to investigating and dismantling these types of schemes, protecting individuals from financial exploitation in the rapidly evolving world of cryptocurrency.” The investigation was spearheaded by the FBI’s Boston field office, which has seen a surge in crypto-related fraud cases in recent years.

Schipelliti’s agreement to plead guilty is a significant development, likely intended to secure a more lenient sentence. However, prosecutors are expected to push for a substantial punishment to send a clear message that such fraudulent schemes will not be tolerated. The case highlights the risks associated with unregulated cryptocurrency investments and the importance of thorough due diligence before entrusting funds to investment managers. Assistant U.S. Attorney Benjamin Saltzman is handling the prosecution, and a sentencing date has not yet been announced. Victims are encouraged to monitor court filings for information on restitution possibilities.

This case isn’t isolated. Federal authorities are increasingly cracking down on crypto scams, which have proliferated alongside the rise of digital currencies. Many of these schemes prey on inexperienced investors lured by promises of quick riches, leaving them with nothing but financial ruin. The Haverhill case serves as a stark warning: if an investment sounds too good to be true, it almost certainly is.

The feds are urging anyone who believes they may have been a victim of Schipelliti’s fraud to contact the FBI’s Boston Field Office. Details about the investigation and potential restitution will be made available through the U.S. Attorney’s office website.

Source: U.S. Department of Justice