A Long Island man has received a 41-month prison sentence for directing a Ponzi scheme in which people were falsely told their money would be invested in the sale of gold, jewelry and diamonds.
John Quadrino, 57, was also ordered to pay over $3.3 million in restitution, according to a press release from the U.S. Attorney’s office for the Eastern District of New York.
In April 2018, Quadrino pleaded guilty to one count of conspiring to commit wire fraud.
The scheme operated through Princess Cut Industries Inc., Sassy Jewelry Buyers Inc. and Golden Glitter Trading Inc., collectively referred to in the case as the “gold purchasing companies.” In reality, Quadrino never invested the money, prosecutors said.
Quadrino was sentenced by U.S. District Judge Joan M. Azrack at the federal courthouse in Central Islip.
“The defendant blatantly stole the money of hard-working men and women in our community for the sole purpose of enriching himself until his Ponzi scheme collapsed under the weight of his lies,” said Breon Peace, U.S. Attorney for the Eastern District of New York. “Today’s prison sentence punishes the defendant for the financial ruin he has inflicted on investors who had trusted him.”
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Anne T. Donnelly, Nassau County district attorney, added: “Dozens of investors handed over their savings to this defendant based on empty promises, and in the end, he personally spent and gambled away millions of dollars of their hard-earned money. I commend our law enforcement partners at the FBI and U.S. Attorney’s Office for their work securing today’s prison sentence, and ensuring this defendant cannot further victimize anyone else.”
The release explained:
Quadrino represented to potential investors that the Gold Purchasing Companies were involved in the sale of gold, jewelry and diamonds to refineries and jewelers. He asked investors to invest large sums of money, for fixed periods of time, in exchange for a guaranteed, fixed rate of return at the end of the agreed upon time period. Quadrino never actually purchased gold, jewelry or diamonds in any significant quantities. Instead, Quadrino systematically engaged in a classic Ponzi scheme, over the course of five years, returning investor principal and interest from the investor capital of other victims. As a result, investors invested approximately $13.1 million with the Gold Purchasing Companies and suffered total losses of approximately $3.3 million. The defendant used investor capital to issue checks to himself and to pay for his personal gambling expenses.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the investigation with assistance provided by Special Assistant United States Attorney Matthew Sotirhos of the Nassau County District Attorney’s Office.
