In a recent article from the
Boston Herald, it was revealed that Joseph Gennaco, 68, of Florida, has pleaded guilty
to multiple counts of wire fraud and mail fraud in connection to an alleged
investment scam that ran from 2001 to 2011. The guilty plea comes as part
of a plea deal, and sentencing in the case is set for May 2013.
Gennaco operated under several company names, including Crescent Management
Group, GCT Trust, Gennaco & Associates, and Oceanview Financial Services.
According to federal prosecutors, Gennaco lied to his investment clients
and duped over 20 investors out of a collective $4.5 million dollars.
Prosecutors in the case say that Gennaco falsely told investors that their
cash would go into “life settlements” and other insurance-based
investments. Unfortunately, prosecutors allege that Gennaco instead used
the money brought in from investors to pay his own personal and business expenses.
The guilty plea from Gennaco included 16 counts of mail fraud and 11 counts
of wire fraud. If the plea deal is accepted, Gennaco could be facing eight
years in federal prison, restitution payments, other fines, and three
years of probation.