Former Darien businessman sentenced to 7.5 years in prison for investment fraud scheme
Prosecutors say John Masanotti used his business to defraud 14 clients of more than $4 million.
More Stories
The owner of a Darien business has been sentenced to over seven years in prison and three years of supervised release for his role in a multimillion-dollar fraud scheme, according to the U.S. Department of Justice.
Former Darien resident John Masanotti pleaded guilty in October to one count of wire fraud and one count of tax evasion.
Prosecutors say Masanotti used his business, Middlesex Mortgage Group, LLC, to defraud 14 clients of more than $4 million.
They say Masanotti claimed to invest clients’ money, but instead used their cash for personal expenses and as payment to other clients.
Officials say, in addition to the fraud scheme, Masanotti failed to report to the IRS more than $3 million in income, which resulted in nearly $1 million of tax loss. They say he also lied to the FBI during the investigation and filed false records.
Masanotti has agreed to pay restitution to the victims of his crime, as well as pay back all he owes to the IRS.
Officials say he is scheduled to report to prison on March 19.
