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East Greenbush Man Receives 20-Year Sentence for Investment Fraud
ALBANY, NEW YORK – Scott Valente, age 60, of East Greenbush, New York, was sentenced to 20 years in prison for running a large investment fraud scheme that bilked over 100 investors out of more than $10.6 million.
Valente, who operated his investment company, The ELIV Group, LLC, out of Albany, Schenectady, and Warwick, New York, told investors that he had achieved annual investment returns of 36.38%, 48.27%, 44.56%, and 45.11% for the years 2010 through 2013, respectively. In reality, Valente lost money in each of those years.
The scheme, which began in December 2010 and ended on June 16, 2014, saw Valente receive over $10.6 million from investors, many of whom resided in Upstate New York. He used the funds to enrich himself, taking unauthorized management fees totaling $2.2 million, which he used for personal expenses, including cash withdrawals, personal credit card payments, and the purchase of real estate and luxury items.
Valente also falsely represented to over 30 ELIV investors that he or his company were authorized to accept, hold, and manage Individual Retirement Accounts (IRA), which carry preferential tax treatment. In reality, neither Valente nor ELIV was authorized by the IRS to accept, establish, or maintain IRA accounts.
The case was investigated by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Rick Belliss. Senior United States District Judge Gary L. Sharpe also imposed a 3-year term of supervised release, to begin after Valente’s release from prison.
Valente was originally sentenced to 20 years in prison in 2015, but the sentence was vacated in 2017 and remanded for resentencing. He has been in custody since his original sentencing date.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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