New york man admits to stealing over $5 million from friends and family in long-running investment fraud — Man holding dollar bills roll, corruption payment, dirty money, financial fraud

NEW YORK, NY — A New York man pleaded guilty to running a 14-year investment fraud scheme in which he stole more than $5 million from close friends and family members, federal prosecutors announced.

Joseph D’Ambrosio, operator of a private investment vehicle called Hereford Holdings, entered a guilty plea Tuesday before U.S. District Judge P. Kevin Castel to one count of wire fraud. The charge stems from a scheme that spanned from 2010 through December 2024.

According to the U.S. Attorney for the Southern District of New York, Jay Clayton, D’Ambrosio told investors he was placing their money in legitimate securities and private funds he managed as chief investment officer. In reality, the funds were misappropriated for his personal use.

“Joseph D’Ambrosio stole more than $5 million from his friends and family and hid this fraud until the money ran out,” Clayton said.

Federal investigators said D’Ambrosio issued fake investment performance statements and fraudulent tax forms to investors, falsely showing profits. When withdrawal requests were made, he used new investor money to repay earlier investors in a Ponzi-style arrangement. The scheme collapsed in December 2024 when D’Ambrosio was unable to fulfill redemption requests and confessed.

“For years D’Ambrosio, using deceptive tactics, allegedly stole from people who trusted him all in the name of greed,” said Edward Gallashaw, Acting Inspector in Charge of the U.S. Postal Inspection Service’s New York Division.

Sentencing has not yet been scheduled. D’Ambrosio remains free on bond pending further court proceedings.

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