SEC Charges New York Man with Defrauding Police and Firefighters in Ponzi Scheme
The Securities and Exchange Commission has charged Gregory Altieri of Melville, New York with allegedly operating a Ponzi-like scheme that defrauded current and retired police officers and firefighters.
The Securities and Exchange Commission has charged Gregory Altieri of Melville, New York with allegedly operating a Ponzi-like scheme that defrauded current and retired police officers and firefighters and misappropriating investor funds.
According to the SEC’s complaint, Altieri, through his firm, LNA Associates, raised more than $69 million from at least 80 investors by falsely claiming that the investments would be used to buy jewelry for a business operated by LNA.
Altieri allegedly guaranteed investors that they would quickly receive a return on their investment ranging from approximately 30 percent, and in some instances, more than 100 percent.
However, as the SEC alleges, Altieri used the majority of the funds to perpetuate and conceal his fraudulent scheme, using funds from new investors to pay earlier investors their anticipated returns. The complaint also claims that he misappropriated at least $3.8 million in investor funds.
“As alleged in the complaint, Altieri defrauded current and former first responders and other investors who thought they were making safe investments,” said Richard Best, director of the SEC’s New York regional office. “We will continue to diligently pursue those who prey on investors and abuse their trust.”
The SEC claims that Altieri did not have sufficient funds to repay investors and began obtaining millions of dollars from merchant cash advance providers in 2018. By late 2019, however, he could no longer pay his investors, even with the additional funds.
“Altieri continued to mislead his investors, telling them that the business was working as it should and that, while there were delays in his receipt of funds from his counterparties, it was only a matter of time before the funds came in and he would be able to pay the investors in full,” the SEC stated in its complaint. “However, as Altieri knew, LNA’s business was nonexistent and there were no funds, let alone profits, with which to pay investors.”
Yesterday, Altieri pled guilty to related conduct before the United States District Court for the Eastern District of New York.
The SEC seeks disgorgement of all ill-gotten gains plus interest, as well as a civil monetary penalty.
