Joseph Falcone, the operator of Long Island-based wine and liquor distribution business 3G’S VINO LLC, pleaded guilty in federal court today to wire fraud for his scheme to swindle investors. The Bethpage and Farmingdale resident, who garnered attention after featuring on ‘Shark Tank,’ faces up to 20 years in prison, restitution, and significant fines.
Falcone’s crime involved misusing investors’ funds meant for the expansion of 3G’S to finance his personal expenses. Instead of using the money as promised, he used nearly $527,064 to purchase a Florida residence and support online securities trading. United States Attorney Richard P. Donoghue labeled Falcone’s actions as deceptive practices designed to enrich himself at the expense of unsuspecting investors.
“Falcone lured investors into believing they were funding an up-and-coming business, only to use their money for personal gain,” Donoghue said. “Our office is committed to protecting the investing public by prosecuting those who engage in such deceptive practices.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. emphasized the importance of law enforcement’s role in identifying and holding accountable individuals like Falcone: “Investing can be risky, but it shouldn’t involve deception. The FBI and our partners ensure that fraudsters are held responsible for their actions.”
Established in December 2012, 3G’S distributed a single-serving wine product featured on the television program. From September 2014 to November 2015, Falcone solicited investments, promising to use the funds to purchase the wine products. However, he defrauded investors by wiring their money from New York bank accounts to Florida accounts under his control.
The government’s case against Falcone is being prosecuted by Assistant United States Attorneys Bradley T. King and Madeline M. O’Connor in the Office’s Long Island Criminal Division.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: Official Source ↗
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