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Long Island Portfolio Manager Pleads Guilty to Wire Fraud
A Long Island portfolio manager has pleaded guilty to wire fraud for stealing more than $440,000 from five clients, the Grimy Times has learned.
Patrick Morgan Schiro, 45, of Rockville Centre, New York, admitted to defrauding the investors through his company, Black Rock Morgan LLC (BRM), a purported investment management business he founded in February 2014.
According to court filings, Schiro used false and misleading statements to induce the investors to put in their money, telling them BRM had many clients, managed millions of dollars in assets, and had a team of investment professionals. He also concealed his prior federal conviction for securities fraud from at least four of them.
Once he had the funds, Schiro deceived his investors by telling them their investments were performing well. However, he only invested a small amount of the money and used the rest on personal expenses, including $190,000 to pay one of his children’s university tuition.
When investors asked for their money back, Schiro often ignored their requests or provided false or misleading excuses. He faces up to 20 years in prison and restitution when he is sentenced on August 2, 2017.
The guilty plea was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
The case is being handled by the Office’s Business and Securities Fraud Section, with Assistant United States Attorney David K. Kessler in charge of the prosecution. Schiro has agreed to make restitution to the victims of his fraud in an amount to be determined by the Court.
RELATED: Allianz Exec Admits $7 Billion Fraud Scheme
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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