Holmdel Man Gets 11 Years for $1.6 Million Investor Fraud

Holmdel Man Gets 11 Years for $1.6 Million Investor Fraud

Holmdel, NJ – A federal judge sentenced Holmdel-based Robert J Sucarto to imprisonment of 11 years at his sentencing hearing on March 9.  Sucarto would spend 132 months in federal prison, spend another three years under supervised release thereafter and must pay restitution of $1,165,280.04.

A year ago, 42 year old Sucarto had pleaded guilty to defrauding more than $1.6 million out of investors who were enticed into investing with him based on his false claims of having earned compounded annual returns of more than 1,800 percent in two hedge funds managed by him.

Sucarto also admitted to putting up mailing addresses in Chicago and New York that gave investors the impression he had offices located at prestigious locations.

Sucarto presented himself as president and owner of capital management and consultancy firm New York Financial Co., which had “virtual offices” in Chicago and New York, and supposedly employed “over 20 experienced traders”, according to New Jersey Attorney Paul J Fishman.

In reality, however, Sucarto was sharing office space and other infrastructure such as receptionists and conference room facilities, with many other entities by paying a fee.

Sucarto acknowledged he had misrepresented to investors that the NYFC Strategic Fund, a fund he had managed since 1993, had accumulated assets of $7.2 billion and generated returns of over 1,800 percent over a decade, said Fishman.

He also admitted to issuing fabricated audit reports, supposedly issued by a reputed accounting firm, that gave the impression the fund had net assets of $798 million.

Investigators found, however, that Sucarto was secretly moving investors’ funds into accounts controlled by himself, to use them for his personal expenditure at retailers such as L.L. Bean, Macy’s and Vermont Teddy Bear, according to Fishman.

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