John Piccarreto, Jr., Ponzi Scheme, New York 2023

Rochester Man Pleads Guilty to Ponzi Scheme

ROCHESTER, NY – U.S. Attorney James P. Kennedy, Jr. announced today that John Piccarreto, Jr., 38, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to conspiracy to commit mail fraud and filing a false tax return.

The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.

Assistant U.S. Attorney John J. Field, who is handling the case, stated that between 2017 and June 2018, the defendant conspired with co-defendants Perry Santillo, Christopher Parris and others, to obtain money through an investment fraud commonly known as a Ponzi scheme.

The scheme, which was conducted under the umbrella of a business entity called Lucian Development, involved the sale of fraudulent promissory notes that were issued under the names various entities that Santillo and Parris controlled, including Lucian Development, First Nationale Solutions, United RL Capital Services, and Percipience Global Corporation (the issuers), among others.

Piccarreto began working for Lucian Development in March 2012, and initially was unaware that the business was, in fact, a Ponzi scheme. The defendant’s responsibilities included assisting with the completion of transaction paperwork for clients of Lucian Development, including checks and wire transfers, and other clerical responsibilities.

As he gained experience with investments and obtained a securities license, Piccarreto’s responsibilities increased to include meeting with existing investors who had questions or complaints about Lucian Development and selling investment products, including promissory notes and other investments, to a few investors.

By January 2017, the defendant realized that the Lucian Development business was, indeed, a Ponzi scheme after the company stopped paying promised returns to client investors whom he serviced.

However, rather than severing his association with Lucian Development, Piccarreto continued to work for Santillo and Parris, knowingly lying to investors by falsely reassuring them that their investments were safe and secure, even though he knew this was not true, and encouraging investors to “reinvest” their fraudulent investments by signing new promissory notes.

For example, in May 2018, the defendant met with Victim 1 who over the years had invested approximately $93,199.75 with Lucian Development and First Nationle Solutions. Piccarreto represented to Victim 1 that his money was safe in an account, even though he knew that was untrue. Piccarreto also tried to convince Victim 1 to reinvest his principal and accrued interest in another fraudulent promissory note.

Piccarreto admitted that from January 1, 2017, and June 19, 2018, he was involved in defrauding approximately 400 investors out of approximately $18,081,556, which resulted in financial hardship to more than 25 of its investor victims.

Piccarreto is scheduled to be sentenced on March 24, 2023, at 9:30 a.m. before Chief U.S. District Judge Frank P. Geraci, Jr.

Source: https://www.justice.gov/usao-wdny/pr/rochester-man-second-plead-guilty-ponzi-scheme-bilked-investors-out-millions-dollars