Investment Fraud: John Quadrino Charged With Wire Fraud Conspiracy For Orchestrating a Ponzi Scheme
Quadrino Defrauding 80 Investors in a Ponzi Scheme
Oceanside Man Indicted In Multi-Million-Dollar Fraud Scheme
John Quadrino Charged With Defrauding Over 80 Investors in a Ponzi Scheme, Resulting in Losses of More Than $6 Million
A six-count indictment was unsealed this morning in federal court in Central Islip, New York, charging John Quadrino, the owner/operator of Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc., and Golden Glitter Trading, Inc. (collectively referred to as the “Gold Purchasing Companies”). The defendant is charged with wire fraud and wire fraud conspiracy for orchestrating a Ponzi scheme over the course of more than five years utilizing the Gold Purchasing Companies. The defendant will be arraigned at the federal courthouse in Central Islip this afternoon before United States Magistrate Judge Arlene R. Lindsay.
The charges were announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation (“FBI”), New York Field Office, and Madeline Singas, Nassau County District Attorney.
As set forth in the indictment, the charges against the defendant stem from a multi-year investigation by the United States Attorney’s Office, the FBI and the Nassau County District Attorney’s Office (“NCDAO”). The investigation revealed that the defendant represented to potential investors that the Gold Purchasing Companies were involved in the sale of gold, jewelry and diamonds to refineries and jewelers. The defendant asked investors to invest large sums of money for fixed periods of time in exchange for a guaranteed, fixed rate of return at the end of the agreed upon time period. Contrary to the representations made by the defendant to investors, the defendant never actually purchased gold, jewelry or diamonds in any significant quantities. Instead, he systematically engaged in a classic Ponzi scheme over the course of five years, returning investor principal and interest from the investor capital of other victims. As a result, more than 80 investors invested approximately $13.1 million with the Gold Purchasing Companies and suffered total losses of approximately $6.3 million. The defendant used investor capital to, among other things, issue checks to himself and to pay for his personal gambling expenses.
“As alleged, the defendant deceived investors with the promise of purchases of gold and other valuables and guaranteed returns, leading to his own enrichment and victim losses of over $6 million,” stated Acting United States Attorney Rohde. “We will not permit such conduct to go unanswered.” Ms. Rohde expressed her appreciation to the FBI and NCDAO for their assistance during the course of this multi-year investigation.
“As alleged, rather than carrying out his plan as promised, Quadrino dangled a shiny prospect in front of his victims while funneling their money into a scheme to defraud others and enrich himself,” said FBI Assistant Director-in-Charge Sweeney, Jr. “People know there’s risk involved in investing, but they shouldn’t have to start out with the odds stacked against them. Along with our partners, we remind the public how seriously we take offenses of this nature.”
“This defendant is accused of pilfering the savings of dozens of innocent investors by promising them great returns, but instead he allegedly gambled their money away,” DA Singas said. “Fortunately, working with our law enforcement partners at the Eastern District of the U.S. Attorney’s Office and the FBI, we were able to end this alleged Ponzi scheme before more investors were victimized.”
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the offense, the defendant faces a maximum sentence of 20 years’ imprisonment per count.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution with assistance provided by Special Assistant United States Attorney Matthew Sotirhos of the Nassau County District Attorney’s Office.
Oceanside, New York
E.D.N.Y. Docket No. 17-CR-153 (DRH)