A Bronxville investment advisor, Joseph D'Ambrosio, has been charged with defrauding his clients – including friends and family – out of over $5 million, as per the Southern District of New York's U.S. Attorney's announcement. D'Ambrosio pleaded guilty to a scheme that involved claiming to invest client funds in a private fund that he managed, while instead funneling the money for personal use, according to details from the U.S. Attorney's Office, Southern District of New York.
Sustaining the ruse for nearly 14 years, D'Ambrosio sent his investors forged documents, like false performance letters and K-1 tax forms, which falsely represented gains. When withdrawals were requested, using money from new investors, he kept his scheme afloat in a manner reminiscent of a Ponzi scheme. It wasn't until facing untenable withdrawal requests in December 2024 that D’Ambrosio confessed to his misdeeds. "Joseph D’Ambrosio stole more than $5 million from his friends and family and hid this fraud until the money ran out," said U.S. Attorney Jay Clayton, in a statement obtained by the U.S. Attorney's Office.
Charged with one count of investment adviser fraud, D'Ambrosio faces a maximum of five years in prison if sentenced to the full extent of the law. The criminal charge against D'Ambrosio carries a weight that Congress has the sole authority to prescribe the potential sentence, a reminder that personal and professional misconduct will not go unchecked. "Fraudsters often prey on those close to them – friends, family, members of religious and social groups – using their trust to exploit them. This Office will bring those who violate that trust to justice and recognizes Mr. D’Ambrosio’s self-reporting and acceptance of responsibility," Clayton added, highlighting the betrayal at the heart of this case, as per the U.S. Attorney's Office.
The U.S. Postal Inspection Service (USPIS), which worked alongside the prosecutor, denounced D'Ambrosio's actions. Following an investigation, "What makes D’Ambrosio's alleged conduct especially appalling is that his victims were personal friends and family," stated Acting Inspector in Charge Edward Gallashaw, as part of the inquiry into the fraud case. The Securities and Exchange Commission has also stepped up, filing separate civil charges against D’Ambrosio, seeking to complement the criminal proceedings and to formalize accountability for his financial crimes, as reported by the U.S. Attorney's Office.
The prosecution, led by the Office's Securities and Commodities Fraud Task Force and Assistant U.S. Attorney Matthew R. Shahabian, is proceeding amidst acknowledgments of the exemplary effort by the USPIS and the coordination with the SEC.
