Barred stock broker who scammed senior citizen investors gets 45 months in prison
A barred stock broker who used more than $1 million in funds from investors on personal expenses and fraudulently received almost $100,000 in COVID-19 relief has been sentenced to 45 months in federal prison, officials said.
Anthony Mastroianni Jr., 49, of Manalapan, was sentenced in Trenton federal court on Thursday after pleading guilty to two counts of wire fraud, the U.S. Attorney’s Office District of New Jersey said.
After agreeing to be barred from working as a broker by the Financial Industry Regulatory Authority in 2016, Mastroianni spent five years collecting money from investors and using it for personal expenses, authorities said.
Mastroianni told the 14 victims, who were mostly senior citizens, that he would generate large investment profits for them through his company, Global Business Development & Consulting Corporation.
The victims lost a total of about $1.2 million, federal prosecutors said.
“This defendant admitted defrauding investors by taking the money they entrusted to him and using it for his personal benefit, rather than investing it,” U.S. Attorney Philip R. Sellinger said. “He did this after already having agreed never to work as broker. Investors need to know their money is being used for their best interest, and not to line the pockets of criminals. Mastroianni is now realizing the price that must be paid for stealing from innocent victims.”
Mastroianni also obtained a loan from the government for $96,300 that was meant for struggling small businesses during the COVID-19 pandemic. He also used those funds for personal expenses, authorities said.
As part of his sentence, Mastroianni has been ordered to pay $1.3 million in restitution and serve three years of supervised release.
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Nicolas Fernandes may be reached at nfernandes@njadvancemedia.com.
