NEWARK, N.J. – Nicholas Lattanzio, 61, of Montclair, New Jersey, is facing a potential 20-year stretch in federal prison after a jury found him guilty today of a cold-blooded scheme to defraud investors out of $4 million. U.S. Attorney Craig Carpenito announced the conviction following a three-week trial before Judge Kevin McNulty.
Lattanzio, the owner and manager of the Black Diamond Capital Appreciation Fund L.P. (BD Fund), wasn’t building wealth for his investors; he was building a lavish lifestyle on their dime. From June 2013 through November 2014, Lattanzio allegedly soaked two corporate investors for millions in upfront fees, promising future loans and investment opportunities that were nothing more than smoke and mirrors. The money never materialized into legitimate investments.
Instead, the feds say Lattanzio treated the BD Fund like his personal piggy bank. He siphoned off the bulk of the stolen funds, funneling over $500,000 into his own pocket as salary. But that wasn’t enough. The evidence presented at trial revealed a spending spree fueled by victim’s money: a $1 million home in Montclair, a brand new Range Rover, a ridiculously extravagant $100,000 diamond ring, and a half-million-dollar bailout of his own credit card debt.
Lattanzio wasn’t just stealing; he was actively covering his tracks. He allegedly lied to the investors about the status of their funds, spinning a web of deceit to convince them their money was safe and sound. The scheme unraveled, however, leading to the indictment on two counts of wire fraud and two counts of securities fraud – all of which the jury found him guilty of.
The government isn’t just after prison time. They’ve already seized Lattanzio’s 2013 BMW 650 and various pieces of jewelry. They’re also pursuing forfeiture of the Montclair home, built on the backs of defrauded investors. Each count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The investigation was led by the FBI’s Newark field office, with assistance from the SEC’s New York Regional Office and the N.J. Bureau of Securities.
Assistant U.S. Attorneys Nicholas P. Grippo, Daniel V. Shapiro, and Peter Gaeta are prosecuting the case. Lattanzio was represented by defense counsel John D. Arseneault and John J. Roberts of Chatham, New Jersey. Sentencing is pending, and Lattanzio can expect a hefty bill for his legal representation – a small price to pay compared to the $4 million he stole. Grimy Times will continue to follow this case.
Related Federal Cases
- Enrico Rubano, Shivam Maharaj Copped to $3.4M Fund Rip-Off · New Jersey
- $5M Fraud: Ex-Alpine Resident Trolice Admits Guilt · Connecticut
- Ex-IRS Officer Brewer Gets 6 Months for Tax Fraud · New Jersey
- Tax Cheat Partners Get Caught: Westchester Accountants Plead Guilty to $2.5M Tax Fraud Scheme · New York
- New Jersey Man Sentenced for Wire Fraud Kickback Conspiracy and Tax Evasion · New Jersey
Key Facts
- State: New Jersey
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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