Scott Valente, Securities Fraud, New York 2024

ALBANY, NEW YORK – In a devastating blow to his victims, Scott Valente, a 58-year-old investment advisor, has been sentenced to 20 years in prison for his role in a multimillion-dollar investment fraud scheme.

Valente, who operated his investment company, The ELIV Group LLC, out of Albany, Schenectady, and Warwick, New York, was convicted in May of securities fraud, mail fraud, and obstructing and impeding the internal revenue laws.

According to court documents, Valente received more than $10.6 million from over 100 individual investors, many of whom were from Upstate New York. He promised them astronomical returns, claiming to have achieved annual investment returns of 36.38%, 48.27%, 44.56%, and 45.11% for the years 2010 through 2013, respectively.

However, in reality, Valente lost money in each of those years. He also took unauthorized management fees of about $2.2 million, which he used to enrich himself with cash withdrawals, personal credit card payments, and the purchase of real estate, jewelry, and liquor.

Valente's scheme, which began in December 2010 and ended on June 16, 2014, has left his victims devastated. The Securities and Exchange Commission (SEC) has also filed a civil enforcement action against Valente and his company in the United States District Court for the Southern District of New York.

Valente was sentenced by United States District Judge Gary L. Sharpe, who also ordered him to serve 3 years of supervised release following his release from prison. The court also ordered Valente to pay about $8.2 million in restitution.

The announcement was made by United States Attorney Richard S. Hartunian, Shantelle P. Kitchen, Special Agent-in-Charge of the Internal Revenue Service-Criminal Investigation's New York Field Office, and Andrew W. Vale, Special Agent-in-Charge of the Albany Division of the Federal Bureau of Investigation.

“What Scott Valente did was terrible, both in terms of the financial ruin he caused and the emotional anguish he inflicted on his victims,” stated U.S. Attorney Richard S. Hartunian. “He stole several million dollars, improperly invested millions more, and lied to people who put their trust in him and gave him their life savings. These people are devastated. My Office and our agency partners are working hard to recoup as much money as possible for them.

Valente's sentencing is a significant victory for the victims of his scheme and a reminder that investment advisors who engage in such conduct will be held accountable. The case is a testament to the tireless efforts of law enforcement agencies in working together to protect investors and bring perpetrators to justice.

Source: https://www.justice.gov/usao-ndny/pr/investment-advisor-sentenced-20-years-prison