Stephen Colangelo, Multimillion-Dollar Fraud Schemes, New York 2013
Investment manager Stephen Colangelo, 46, of Congers, New York, was sentenced to 87 months in prison in Manhattan Federal Court on April 29, 2014, for perpetrating two separate multimillion-dollar fraud schemes.
According to U.S. Attorney Preet Bharara, Colangelo defrauded investors out of over $3.5 million through his hedge fund, Brickell Fund, LLC, and three other companies: Hedge Community, Start A Hedge Fund, and Under the Radar SEO.
Colangelo's schemes involved making numerous misrepresentations to investors, including issuing fraudulent performance statements, private placement memoranda, and other business documents. He also misappropriated large amounts of investor money for his own personal benefit and to support unrelated business ventures.
The schemes led to net losses of approximately $3.5 million to investors. In addition to his prison sentence, Colangelo was ordered to pay restitution to the victims of his schemes, which totals approximately $3.5 million.
Colangelo pled guilty on December 19, 2013, to two counts of securities fraud and two counts of wire fraud. He was sentenced by U.S. District Judge Robert W. Sweet in Manhattan federal court.
The investigative work of the Federal Bureau of Investigation and the Securities and Exchange Commission were praised by Mr. Bharara. The case was brought in coordination with President Barack Obama's Financial Fraud Enforcement Task Force.
Colangelo was also sentenced to 3 years of supervised release and was ordered to pay a mandatory $400 special assessment. His crimes are a reminder of the importance of investigating and prosecuting financial crimes.
Key Facts
- State: New York
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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