Saturday, November 3, 2018

NY developer Michael D’Alessio pleads guilty to $58M ponzi scheme

D’Alessio guaranteed monthly interest payments and a share in the profits.Michael D’Alessio, 53, has pleaded guilty in New York to one count of committing wire fraud and one count of concealing assets from a bankruptcy court. He faces up to 20 years in prison and fines when he is sentenced next year. The elaborate scheme involved defrauding investors of luxury real estate developments in Manhattan, the Hamptons, and Westchester.

He offered shares of a newly formed company, named after the location of the real estate to be developed and sold. The scheme began in 2015.
D'Alessio defrauded investors out of more than $58m. He used the loot to pay off debts and to fund gambling and other personal expenses.

When D’Alessio eventually was petitioned into bankruptcy, he immediately perpetrated another fraud by trying to conceal his assets.