United States Attorney Jay Clayton and Acting Inspector Edward Gallashaw of the US Postal Inspection Service have announced that Joseph D’Ambrosio, 66, of Bronxville, New York, has pleaded guilty to investment advisor fraud. The charges stem from D’Ambrosio’s operation of Hereford Holdings, a private investment fund that he told investors was managed by him as chief investment officer.
However, the reality was that D’Ambrosio misappropriated investor funds for his personal use, telling investors their investments were thriving while in fact they were losing money. He sent out false investment performance letters and fraudulent K-1 tax forms to maintain the illusion of success.
Gallashaw emphasized the personal nature of the crime, stating that D’Ambrosio’s victims were friends and family, emphasizing the Postal Inspection Service’s commitment to investigating such cases and holding those responsible accountable.
Clayton praised D’Ambrosio’s self-reporting and acceptance of responsibility. He also commended the work of the Securities and Exchange Commission, which has filed civil charges against D’Ambrosio.
The scheme unraveled when D’Ambrosio faced withdrawal requests he could not honor. The fraud lasted from at least 2010 to December 2024, during which time he obtained over $5 million from investors. D’Ambrosio faces a maximum sentence of five years in prison for the single count of investment advisor fraud.
This case is being handled by the Securities and Commodities Fraud Task Force, with Assistant U.S. Attorney Matthew R. Shahabian leading the prosecution.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime|Organized Crime
- Source: Official Source ↗
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