Former Darien man accused of running investment fraud scheme that cost clients over $4M

May 9—A former Darien resident suspected of running an investment fraud scheme for about 7 years has been charged with federal offenses, officials announced on Thursday.

John Masanotti, 69, who now lives in Florida, was arrested in that state Thursday on eight counts of wire fraud, 11 counts of making illegal monetary transactions, and single counts of making false statements and falsification of records in a federal investigation. He was released on $100,000 bond after appearing in court in Florida, and he is scheduled to arraigned May 15 in Hartford.

According to federal officials, when Masanotti lived in Darien, he was the owner and managing member of the Middlesex Mortgage Group LLC. Through that company, Masanotti acted as an investment advisor and claimed to clients and potential clients that invested funds were or were going to be pooled together and invested, federal officials said.

More News

Norwalk's budget finalized. Here is what the average tax bills are

After a few last minute adjustments and new revenue, Norwalk's operating budget was set at...

Former Norwalk man pleads guilty to trafficking fentanyl, feds say

The U.S. attorney's office says Jose De Jesus Vega-Cervantes, a 45-year-old former Norwalk...

Norwalk man, 43, accused of sexually assaulting minor, police say

David Osler of Norwalk was arrested on charges of fourth-degree sexual assault Tuesday,...

N.Y. man rejects offer in Norwalk negligent homicide case

A New York man is likely headed to trial after rejecting an offer to plead guilty to...

Trucker describes saving driver from burning Camaro in I-95 Norwalk crash

He said the Camaro driver thanked him for saving his life.

However, officials allege that between 2016 and 2023, Masanotti used money invested by at least 10 clients for personal expenses or to pay returns to other clients, defrauding them of more than $4 million in the process. Officials said that Masanotti provided the clients with fraudulent monthly account statements that showed fake investment profits.

Masanotti also is charged with making false statements to the FBI, and filing false records in an attempt to obstruct the investigation, officials said.

___

(c)2024 The Hour (Norwalk, Conn.)

Visit The Hour (Norwalk, Conn.) at www.thehour.com

Distributed by Tribune Content Agency, LLC.