Anthony Lucchetto, Jr. of Plainfield, New Jersey and his company, Serafino Holdings LLC, were sued by the New Jersey regulators for perpetrating a $15 million Ponzi scheme that allegedly victimized about 80 investors.

            Investigation by the securities litigation law firm of John S. Chapman & Associates, LLC established that Lucchetto passed himself as a financial professional and offered “construction loan” investment opportunities to New Jersey investors.  Such “construction loan” investments were unregistered securities, according to John Chapman, a securities attorney. 

            To entice his victims to invest, Anthony Lucchetto offered above-market returns and assured them that the loans were 99% secured by asset liens.  In fact, Lucchetto appears to have converted the investors’ funds.  Unable to pay back some of his investors, Lucchetto indicated to them that their funds were transferred to another Ponzi scheme that collapsed at about the same time.  The law firm of Chapman & Associates is currently researching to establish whether Lucchetto’s statement was accurate.

            While the New Jersey Bureau of Securities has frozen Lucchetto’s and Serafino Holdings’ assets, recovery of investor funds from Lucchetto is in doubt, according to Chapman.  “In every Ponzi scheme, the perpetrator uses funds from subsequent investors to pay earlier investors’ returns, so in the end, when the scheme collapses, there is usually not much money left,” said Chapman. 

Chapman also indicated that third parties that assisted Lucchetto or failed to prevent him from perpetrating his fraud, even though they had a duty to do so, may be held liable for investor losses.  “Lucchetto was actively deceiving the investing public, while those in charge with supervising him were asleep at the wheel,” he commented.

            The securities litigation law firm of Chapman & Associates is continuing to investigate Anthony Lucchetto’s alleged fraud, and is preparing to take action on behalf of victimized investors.  If you have lost money invested with Anthony Lucchetto or Serafino Holdings, contact us immediately by email at jchapman@jscltd.com, or phone at 866-220-3300.