In a release from the U.S. Attorney’s Office in New York, a New York Real Estate Developer Michael D’Alessio pled guilty in a federal court to master minding a real estate fraud involving luxury developments, The projects were located variously in Manhattan, Westchester and the Hamptons. The Developer then lied on Federal Bankruptcy filings.
$58 Million was collected in the Ponzi. The Ponzi involved the sale of interests in Limited Liability Companies, supposedly involved in real estate development, to victim investors. A Ponzi scheme is a plan to collect moneys from unsuspecting investors, stealing a portion of the funds, then returning alleged high rates of return to earlier investors using the funds from later investors. Investors are almost always promised a fictitious above market rate of return. The most recent “huge” Ponzi was the Bernard L. Madoff Securities LLC Ponzi.http://www.BrokerFraud.Net. That one involved a gross amount of $65 Billion, but with approximately $20 billion of initial investors funds being involved.
The Release and related court documents stated that D’Alessio served as the president of a real estate development firm involved with residential and commercial projects.
D’Alessio promised a “guaranteed” monthly interest payments. But from about 2015 through mid 2018, D’Alessio used the money to pay initial investors, and to pay gambling and other personal expenses.
In 2018, D’Alessio was forced into involuntary bankruptcy. His bankruptcy filings contained false statements which omitted money and property belonging to his estate. The declarations in the filing were made under penalty of perjury. False statements in bankruptcy filings are concerned serious offenses by the US Attorney.
D’Alessio pled guilty to one count of wire fraud, with a maximum sentence of 20 years in prison and a maximum fine of $250,000; and one count of concealing assets from a bankruptcy court, which carries a maximum sentence of five years in prison and a maximum fine of $250,000. Under both counts, D’Alessio could also be fined twice the gross gain or loss from the offense.
Anthony M. Abraham, Esq., PC, has represented many investors who have claimed against Bankrupt and other estates for return of assets taken through fraud, including Ponzi schemes. Anthony M. Abraham, Esq., PC is experienced in churning, unauthorized trading claims and other stock and securities based claims. If you were victimized in this Ponzi scheme and need help, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.http://www.BrokerFraud.Net