Washington County Investment Advisor Sent To Prison For 19 2/3 To 59 Years
NEW YORK, NY. (January 11, 2007) — Attorney General Andrew M. Cuomo today announced the incarceration of a Washington County man who was found guilty of defrauding approximately 50 people out of more than $3 million dollars.
Columbia County Court Judge Paul Czajka today ordered that Dominick DeDeo, 67, of Greenwich, New York, begin serving a prison sentence of 19 2/3 to 59 years immediately. DeDeo, an investment advisor, established a relationship of trust with numerous people who then invested money with him. DeDeo then fraudulently used these investments for his own purposes.
Cuomo said, “Schemes to defraud investors will not be tolerated. Financial advisors tempted to secretly divert investments for their personal use will be aggressively prosecuted and will go to jail.”
The evidence introduced at trial established that from October 1995 through May 2004, DeDeo used lies and false promises to obtain money from residents of Columbia, Albany, Schenectady, Saratoga, Montgomery, Washington, and Essex counties. DeDeo had initially developed relationships with his victims by establishing revocable living trusts for them. Later, Dedeo told them that he could invest their money and obtain better returns than they could get elsewhere. In reliance upon the defendant’s representations, these individuals gave checks and cash to Dedeo in amounts as great as hundreds of thousands of dollars per victim. But DeDeo never made the promised investments. Instead, he used the funds to return money to earlier victims, to make payments which he falsely called “interest,” and for his own personal purposes.
On April 4, 2006, a jury found DeDeo guilty of five counts of Grand Larceny in the Second Degree, a class C felony, two counts of Grand Larceny in the Third Degree, a class D felony, and Scheme to Defraud in the First Degree, a class E felony.
On August 7, 2006, DeDeo was sentenced to prison and was ordered to pay nearly $2 million in restitution to 35 of the victims of his scheme. Until today, the defendant had been released on $150,000 bail pending appeal. The terms of his bail released him for only 120 days. That time expired at the end of December.