Deception Detected! Florida Man’s $4 Million Investment Scheme Exposed
A Florida man was arrested on Thursday, two days after a federal grand jury in New Haven returned a 21-count indictment charging him with offenses related to an alleged investment fraud scheme that cost clients more than $4 million, according to a press release from the United States Attorney’s Office for the District of Connecticut.
John Masanotti, Jr., 69, of Bonita Springs, Fla., appeared in federal court in Fort Myers, Fla., on Thursday, according to prosecutors. He was released on a $100,000 bond and will be arraigned in Hartford federal court on May 15.
The indictment alleges that Masanotti, a former Darien resident, owned and controlled Middlesex Mortgage Group, LLC, also known as Middlesex Group, LLC, which was situated in Darien. Masanotti, according to prosecutors, operated as an investment advisor through the Middlesex group and “purported” to administer a pooled investment vehicle on behalf of clients.
According to prosecutors, Masanotti promised clients and potential clients that the monies they deposited in would be pooled and invested in foreign currency and other ventures. However, prosecutors allege that between 2016 and 2023, Masanotti deceived at least ten clients of more than $4 million by utilizing their money for personal needs and paying returns to other clients. He allegedly gave consumers bogus monthly account statements from Middlesex that showed fake investment earnings.
Furthermore, the indictment claims Masanotti gave false statements to the Federal Bureau of Probe during the probe and filed fraudulent records in an attempt to hinder the investigation, prosecutors said.
According to prosecutors, the indictment charges Masanotti with eight counts of wire fraud, each of which carries a maximum sentence of 20 years. He is also charged with 11 charges of unlawful monetary transactions, each of which carries a possible 10-year prison sentence.
According to prosecutors, the indictment also includes one count of giving false statements, which has a possible jail penalty of five years, and one count of falsifying records in a federal inquiry, which carries a maximum punishment of twenty years.