Springfield Stockbroker Carlo Chiaese Charged with Fraud, Ponzi Scheme
Springfield stockbroker Carlo Chiaese was charged with running a fraudulent investment scheme that defrauded numerous investors of more than $2 million.
Investigation by the securities litigation law firm of Chapman & Associates established that Chiaese was the owner and president of a Springfield-based investment firm, as well as an investment advisor. He had been working in the financial industry since 1999 and was previuosly employed by Wall Street firms such as Citibank, Merrill Lych and Bear Stearns.
According to the criminal complaint filed against him,
Chiaese solicited new clients through his investment firm, CGC Advisors, by touting his investment experience and assuring his investors he would place their funds in low-risk securities such as bonds and mutual funds.
Between November 2008 and September 2010, Chiaese raised more than $2.4 million from individual and institutional investors in New Jersey and New York. One of his investors is a pension fund containing the pensions of more than 850 current and former unionized New York City public sector employees.
Chiaese did not use the investors' funds as promised. Instead of investing the money, he used them to repay other investors, in typical Ponzi scheme fashion. He also used the funds to support his lavish lifestyle, including lease payments on a Porsche 911, an Audi Q7 and a Land Rover, memberships at two country clubs, $16,000 worth of rugs, $32,000 in landscaping, $23,000 in home audio equipment, $25,000 in clothing purchases at stores such as Hermes and Salvatore Ferragamo, and $14,000 for stays at luxury hotels, according to the federal regulators.
The Chapman & Associates attorneys determined that, during the time he perpetrated his scheme, Chiaese was affiliated with a securities broker-dealer firm. "Securities broker-dealer firms have a duty to supervise their registered representatives and prevent them from violating the securities rules and regulations," said John S. Chapman, a securities attorney. "We will hold liable those who failed to comply with their duties and allowed their agents to defraud the investing public," said Chapman.
The securities law firm of Chapman & Associates has been investigating this fraud and is preparing to take action and help defrauded investors recover their losses. If you invested with Carlo Chiaese, you may call the law firm of Chapman & Associates at 877-410-8172.