Holmdel Man Sentenced For Investment Scam

The shore-based former owner of New York Financial Company heads to prison for 11 years for his role in an investment scam totalling $1,600,000. , 42, of Holmdel, was sentenced today in Camden in a ruling that also requires him to pay $1,165,280.04 in restitution.

The sentence meted out by Judge Renee Marie Bumb is based on Sucarato's guilty plea to a wire fraud count.

Investors in Sucarato's two bogus hedge funds - NYFC Strategic Fund and NYFC Diversified Strategic Funds - got glowing quarterly account statements with claims of 1,800 percent return on investments, supposedly outpacing the market. Sucarato deposited investments in accounts he controlled and used it for personal expenses including spending sprees at Macy's, Vermont Teddy Bear, and LL Bean.

Sucarato admitted lying about NYFC's standing as an investment advisory and portfolio management operation registered with the Commodity Futures Trading Commission; misrepresenting his educational and professional credits; listing non-existent company officers and managers; and otherwise manufacturing an image of a high-powered firm with more than 20 traders in New York and Chicago. He claimed to have been managing the Funds since 1993, growing the assets to $7,200,000,000. He fabricated an audit report showing a net company worth of $798,000,000.

The disgraced broker admitted having a "virtual office" in New York, sharing space with other companies at a nominal rent in exchange for the luxury of a prestige mailing address.