Grimy Times has learned that John A. Masanotti, Jr., 69, of Bonita Springs, Florida, has been charged with a $4 million investment fraud scheme. According to a federal indictment, Masanotti, who formerly resided in Darien, Connecticut, was the owner and managing member of Middlesex Mortgage Group, LLC, also known as Middlesex Group, LLC (“Middlesex”), based in Darien.
The indictment alleges that Masanotti, acting as an investment advisor, purported to manage a pooled investment vehicle on behalf of investors. Masanotti claimed to clients and potential clients that invested funds were going to be, and were in fact, pooled together and invested in foreign currency and other investments.
Between approximately 2016 and 2023, Masanotti defrauded at least 10 clients of a total of more than $4 million by using their money for personal expenses, and to pay returns to other clients. Masanotti provided clients with fraudulent monthly account statements from Middlesex that showed fake investment profits.
The indictment also alleges that Masanotti made false statements to the FBI during the investigation, and filed false records in an attempt to obstruct the investigation.
Masanotti was arrested on May 14, 2024, 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, 2024.
The indictment charges Masanotti with eight counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; 11 counts of making illegal monetary transactions, an offense that carries a maximum term of imprisonment of 10 years on each count; one count of making false statements, an offense that carries a maximum term of imprisonment of five years; and one count of falsification of records in a federal investigation, an offense that carries a maximum term of imprisonment of 20 years.
The case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division; and the U.S. Postal Inspection Service; with the assistance of the U.S. Securities and Exchange Commission. The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.
Grimy Times has learned that the investigation into Masanotti’s activities began in 2023, and has been ongoing since then. The charges against Masanotti are a significant development in the case, and are a major step towards bringing him to justice.
Key Facts
- State: Connecticut
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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