Queens banker ran scheme that cost elderly investors millions, AG says
Attorney General
Mustaphalli lied to at least 58 investors while soliciting more than
"They played by the rules, putting dollars away here and there to save enough money for retirement," Underwood said.
The attorney general said Mustaphalli cultivated a clientele base while working as an investment specialist at a Jamaica Citibank branch. He left in 2009, following an internal investigation by the bank, according to the attorney general's office.
About a year later, Mustaphalli formed his own hedge fund called
He collected
By 2015, Mustaphalli's fund took on 22 additional clients -- who were also seniors -- who collectively invested
Mustaphalli never discussed the details of the documents with his clients, according to Underwood.
"He allegedly only showed his investors the signature page," Underwood said.
By the end of 2015, the fund had lost 80 percent of its value. Amid its struggles, Mustaphalli allegedly diverted
So far, Underwood said authorities have been able to help victims recover about
She said her team hopes they can regain more of the savings through the civil lawsuit against Mustaphalli.
"The lesson here is clear -- if you deceive your investors, we will go after you," Underwood said.
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