Developer Michael D'Alessio Pleads Guilty to Investment Fraud

U.S. District Judge Jesse M. Furman sentenced NY real estate developer Michael D'Alessio to six years in prison after D’Alessio pled guilty to making false statements in his bankruptcy case and defrauding investors out of $58 million.

Details of the Case

In 2015, D'Alessio began soliciting investors for real estate developments that did not exist. In fact, D'Alessio used investors’ to pay his gambling debts and personal expenses.

Last year, he declared for bankruptcy. Judge Furman reported that D'Alessio didn't seem to have remorse for his crimes. He even appeared to have struck a deal with 16 former investors to whom he owed $2.8 million. He agreed to pay the money he owed them despite his bankruptcy in exchange for the investors not to provide victim statements.

Statements for and Against D’Alessio

While there were about a dozen investors who did provide victim statements, and one in particular, Scott DeCarolis, testified that D'Alessio's scam had emptied out a relative's retirement fund and had nearly bankrupted him.

Surprisingly there also were investors who wrote letters advocating for D'Alessio, claiming they would invest in him again if given the opportunity.

D’Alessio Receives Time in Federal Prison

While both the prosecuting and defense attorneys agreed that Michael D'Alessio never set out intending to defraud investors, that is what he did. For his crimes, he was ordered to pay $58 million and received six years in federal prison, which will be followed by three years of supervised release and 300 hours of community service.

Speak with an Investment Fraud Attorney

 Our AV-rated* securities fraud lawyers have extensive experience litigating a broad range of investment disputes. We will aggressively pursue claims against the culpable brokerage firm or stockbroker to recover your investment losses.

If you are looking for an investment fraud attorney to review your rights and options, the investment fraud lawyers at Dimond Kaplan & Rothstein, P.A. have a track record of getting results for clients. We’ve recovered more than $100 million in assets lost to securities fraud and stockbroker misconduct.

Contact Dimond Kaplan & Rothstein Today

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule an appointment for a FREE case evaluation.

Our offices are located in Los AngelesNew YorkDetroit, West Palm Beach, Naples and Miami, and we represent clients nationwide. Translations services are available.

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