GREENBURGH, N.Y. -- Daniel Fodiman, 51, a former Greenburgh resident, has been indicted on charges of defrauding investors through a multi-million dollar Ponzi scheme, Manhattan District Attorney Cyrus R. Vance, Jr., announced Wednesday.
Fodiman was charged in an indictment in New York State Supreme Court with grand larceny in the second and third degrees, as well as scheme to defraud in the first degree.
“The allure of fast, easy returns is what many white-collar criminals count on to hook their victims,” said Vance. “In this case, the defendant allegedly made misrepresentations to investors and fabricated corporate correspondence. As always, the problem with Ponzi schemes is that they are ultimately unsustainable and endanger the financial stability of all those involved, far beyond the potential profit of any individual return.”
According to the indictment and other legal documents, Fodiman solicited money from prospective investors on the premise that the funds would be used to purchase merchandise for profitable resale. The majority of the merchandise was supposedly sold to TJ Maxx, entitling the defendant’s investors to a return of the principal and a portion of the profit, according to the indictment.
However, in lieu of using the investment money to purchase commercial goods, Fodiman instead used the funds to pay other investors as part of a Ponzi scheme, according to the indictment. Through various misrepresentations,Fodiman was also able to convince some investors to make payments directly to other investors, according to the indictment. Of the millions that flowed through the scheme, Fodiman is accused of spending hundreds of thousands of dollars on personal expenses.
In order to perpetuate the scheme, he also is accused of presenting investors with falsified TJ Maxx purchase orders and bank statements altered to show hundreds of thousands of dollars in pending payments that were, in fact, non-existent.
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