A federal judge in New York has handed down a nine-year prison sentence to a prominent business executive at the center of a sweeping financial deception that defrauded investors of more than $30 million. The case also revealed improper use of investor funds in political fundraising, highlighting the broad reach and serious consequences of white-collar crime.
Fraud Scheme Preyed on Foreign Investors
The convicted executive, a 54-year-old resident of Oyster Bay, New York, was found guilty of masterminding a complex fraud scheme that targeted primarily foreign nationals who were promised U.S. green cards through investment in a purported development project. Prosecutors detailed how investors were charged roughly $500,000 each on the assurance that their contributions would lead to lawful permanent residency — a claim that investigators say was entirely fabricated.
Instead of funding the development project, the court heard that the defendant diverted millions of dollars for personal use, including luxury travel, upscale dining, real estate purchases and high-end items.
Money Funneled into Political Events
Court documents revealed that part of the misappropriated funds was used to make illegal contributions to political fundraising events. In one notable instance, the executive and an associate paid substantial sums for entry to a high-profile 2017 fundraiser for then-President Donald Trump — contributions that were later deemed unlawful because the source of the money was illicit. Prosecutors noted that the political committees involved were unaware of the fraud and faced no charges.
The presence of a photograph taken at the event was allegedly exploited to lend credibility to their fraudulent investment promotions, further ensnaring unsuspecting investors.
Restitution and Forfeiture Ordered
In addition to the prison sentence, the judge ordered forfeiture of $31.5 million and seized properties at three distinct locations linked to the fraud. The defendant will also be required to provide restitution to the defrauded investors, many of whom suffered significant financial losses. A co-conspirator in the scheme received a five-year prison sentence.
