TRENTON, N.J. – A South Carolina man was sentenced today to 72 months in prison for engaging in several bank and wire fraud schemes and a securities offering fraud scheme that spanned six years and caused losses of millions of dollars, U.S. Attorney Philip Sellinger announced.
Sandy Masselli, 63, of Columbia, South Carolina, previously pleaded guilty before U.S. District Judge Michael A. Shipp to nine counts of a superseding indictment charging him with bank fraud, wire fraud, and securities fraud. Masselli was initially charged by complaint in October 2017. Judge Shipp imposed the sentence today in Trenton federal court.
“Sandy Masselli used a web of lies to dupe victims into investing millions of dollars in his company, promising them substantial returns from an initial public offering that was never going to happen. Instead of investing the money as promised, Masselli fraudulently spent it on himself and his family. The significant sentence handed down today holds him accountable for greedily profiting at the expense of innocent investors.”
U.S. Attorney Philip R. Sellinger
According to the documents filed in this case and statements made in court:
From September 2011 through October 2017, Masselli solicited millions of dollars in investments from retail investors by fraudulently touting the prospect of his online gaming company, Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd. (Carlyle), to conduct a lucrative initial public offering (IPO) of its stock on either the NASDAQ or the New York Stock Exchange (NYSE). Masselli induced investors to purchase shares of Carlyle stock by promising them steeply discounted prices in advance of the purported IPO, assuring them that the stock price would increase significantly after the IPO. Masselli further represented that the IPO would occur within weeks or months of the investors’ stock purchases.
However, as Masselli knew, Carlyle was neither poised nor prepared to conduct an IPO on either the NASDAQ or the NYSE, given that, among other deficiencies, neither Masselli nor anyone else on behalf of Carlyle ever filed an application with the NASDAQ or the NYSE to list Carlyle stock on either exchange, or filed with the Securities and Exchange Commission (SEC) a registration statement to list Carlyle shares on a national exchange. Masselli further misrepresented to the investors how he would use their investments, for example telling them that he would allocate investment funds toward improving Carlyle’s online platform and paying legal fees in connection with preparing Carlyle for a looming IPO. Masselli did not invest these funds in Carlyle, as he had promised investors he would, but instead misappropriated these funds to pay for his and his family’s own personal expenses.
Defendant/Respondent: Sandy Masselli
Criminal Charges: Bank fraud, wire fraud, securities fraud
City and State: Trenton, New Jersey
Exact Date: Sentencing – 5/8/2024 (Note: Sentencing date not specified in source, estimated date based on text)
Sentence: 72 months in prison
Dollar Amounts: Millions of dollars
Company: Carlyle Entertainment Ltd., formerly Carlyle Gaming & Entertainment Ltd.
Related Federal Cases
- Lessie Dickerson III, Conspiracy to Commit Wire Fraud, New Jersey 2017 · Connecticut
- Victoria Crosby, Wire Fraud, New Jersey 2023 · New York
- Michael Scott Hillwig, Identity Theft, Bank Fraud, Florida 2024 · New York
- Michael Esposito, Wire Fraud, Arizona 2024 · New York
- Josh Shapiro, Securities Disgorgement, Pennsylvania 2024 · New York
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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