A Connecticut man has been sentenced to over 5 years in federal prison for operating a massive investment scheme that defrauded investors out of nearly $2.4 million.
According to court documents, John D’Auria, 41, of East Haven, Connecticut, was sentenced to 63 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded investors out of nearly $2.4 million.
The scheme, which occurred from approximately 2010 to 2014, involved D’Auria conducting an investment business using the name Fifth Street Capital. Despite being a licensed and registered investment adviser, D’Auria lost his license in approximately 2011.
D’Auria engaged in a scheme to defraud investors by failing to invest the funds as represented and by using the majority of the funds for his personal use.
As part of his scheme, D’Auria made false statements and misrepresentations to his investors regarding the purported returns generated by their investments. He also represented to investors that their funds were fully invested in separate accounts.
In reality, D’Auria did not fully invest the investors’ funds but rather commingled the funds in his own personal bank accounts and his own trading account.
As a result of D’Auria’s scheme to defraud, seven investors lost a total of $2,375,943.49. Today, Judge Michael P. Shea ordered D’Auria to pay full restitution.
D’Auria waived his right to indictment and pleaded guilty to one count of wire fraud on July 13, 2015. He was released on a $100,000 bond and was ordered to report to prison on December 7, 2015.
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Key Facts
- State: Connecticut
- Category: White Collar Crime|Financial Crimes
- Source: DOJ Press Release â†â€â€
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