Developer Michael D’Alessio Pleads Guilty to Investment Fraud
U.S. District Judge Jesse M. Furman sentenced NY real estate developer Michael D’Alessio to six years in prison after D’Alessio pled guilty to making false statements in his bankruptcy case and defrauding investors out of $58 million.
Details of the Case
In 2015, D’Alessio began soliciting investors for real estate developments that did not exist. In fact, D’Alessio used investors’ to pay his gambling debts and personal expenses.
Last year, he declared for bankruptcy. Judge Furman reported that D’Alessio didn’t seem to have remorse for his crimes. He even appeared to have struck a deal with 16 former investors to whom he owed $2.8 million. He agreed to pay the money he owed them despite his bankruptcy in exchange for the investors not to provide victim statements.
Statements for and Against D’Alessio
While there were about a dozen investors who did provide victim statements, and one in particular, Scott DeCarolis, testified that D’Alessio’s scam had emptied out a relative’s retirement fund and had nearly bankrupted him.
Surprisingly there also were investors who wrote letters advocating for D’Alessio, claiming they would invest in him again if given the opportunity.
D’Alessio Receives Time in Federal Prison
While both the prosecuting and defense attorneys agreed that Michael D’Alessio never set out intending to defraud investors, that is what he did. For his crimes, he was ordered to pay $58 million and received six years in federal prison, which will be followed by three years of supervised release and 300 hours of community service.
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