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Southampton Swindler Sentenced to 30 Years for $1M Fraud
Central Islip, NY – In a move that’s sending shockwaves through the financial community, a former investment adviser has been convicted of swindling clients out of $1 million.
Jeffrey Slothower, 47, of Southampton, was found guilty of all three counts of an indictment charging him with wire fraud, investment adviser fraud, and money laundering. The verdict was returned by a federal jury in Central Islip after a three-day trial.
When sentenced, Slothower faces up to 30 years in prison for his crimes. The defendant founded the investment advisory firm Battery Private, Inc. and was registered with the Securities and Exchange Commission.
According to the U.S. Department of Justice, Slothower orchestrated a scheme to misappropriate more than $1 million from current and prospective clients. He solicited business from a couple from California, promising them a rate of return without market risk. Instead of investing their money, Slothower funneled it into his personal bank accounts and used it to purchase a $125,000 Mercedes Benz SUV, membership dues at a private East End country club, and other luxury items.
U.S. Attorney Breon Peace stated, ‘This case was about greed and betrayal of clients who trusted the defendant and thought their money was safely invested with him.’ He added, ‘Protecting investors from fraudsters like the defendant has always been a priority of this Office.’
The FBI’s James Smith, Assistant Director-in-Charge, New York Field Office, praised the special agents who investigated the case. ‘Their outstanding work brought a swift end to Slothower’s scheme and brought him to justice.’
Slothower’s crimes were uncovered after an investigation by the FBI’s New York Field Office. The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of New York.
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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