John Desantis, Dwayne Malloy Indicted in $9.3M Securities Fraud

John Desantis, a New York resident, and Dwayne Malloy, of New Jersey, were arrested today on federal charges of securities fraud and wire fraud tied to a $9.3 million scam that ripped off more than 300 investors across 40 states. The pair, former owner and president of Staten Island-based Premier Links, Inc., allegedly ran an unlicensed brokerage operation for seven years, using high-pressure sales tactics and false promises of big returns to funnel investor cash into their own pockets.

From 2005 to 2012, Premier Links operated out of a Staten Island office, posing as a legitimate stock brokerage. But Desantis and Malloy were never registered with the Securities and Exchange Commission. Instead, they ran a full-blown boiler room, employing cold callers to lure victims using what one defendant called ‘the suckers list.’ Investors were pressured into wiring or mailing money for shares in worthless companies—money that was almost immediately siphoned off through over 900 ATM and bank teller withdrawals.

Bank records reveal a trail of personal spending: checks written to themselves, cash withdrawals, and luxury purchases—all funded by victim investments. Investigators say not a dime went to actual securities. The operation was less Wall Street and more street grift, built on deception and greed. The $9.3 million stolen represents one of the largest unregistered broker-dealer frauds uncovered in the Eastern District of New York in recent years.

‘As alleged, the defendants preyed on unsuspecting investors and stole their money after conning them into buying shares of worthless companies. Now, their day of reckoning has arrived,’ said United States Attorney Robert L. Capers. ‘Today’s arrests demonstrate this Office’s continuing commitment to protecting the investing public from those who seek to swindle investors for personal gain.’

FBI Assistant Director-in-Charge William F. Sweeney, Jr. added, ‘Desantis and Malloy used the investors’ money for their own pocketbook to the tune of $9.3 million.’ He emphasized the FBI’s mission to protect market integrity and ensure all investors have access to truthful information—something the defendants flagrantly violated.

The case, assigned to United States District Judge Eric N. Vitaliano, was brought by the Business and Securities Fraud Section of the U.S. Attorney’s Office. Prosecutors Jack Dennehy and Alexander Mindlin are handling the case. If convicted, Desantis and Malloy each face up to 20 years in prison, a fine double the investors’ losses, and mandatory restitution. The charges were filed under the President’s Financial Fraud Enforcement Task Force, a multi-agency crackdown on white-collar crime.