When he pleaded guilty to fraud last January, Robert Sucarato had no idea that he might have to spend over eight years in the Big House. Sucarato was the founder of the New York Financial Company, a grand-sounding name for a Ponzi scheme. The fund rooked investors out of $1.6 million.
The New Jersey federal judge overseeing the case has postponed sentencing until October, apparently to mull over a stiffer sentence that originally contemplated, according to the U.S. Attorney's Office in NJ. Federal sentencing guidelines call for a lockup period of six and a half to eight years. The defense lawyers have been given an opportunity to respond.
Incarcerated since April, Sucarato admits to being a serial liar. He inflated the amount under investment from $110.000 to $7.2 billion. He made up a phony degree from New York University, and then spun fairy tale biographies for his firm's officers. To top that off, he claimed phantom offices in Chicago and New York.
Sucarato helped himself to half a million dollars from the original investments of $1.7 million. He also lost $850.000 investing, and used the rest to keep the Ponzi scheme operating.
The new sentencing date for Sucarato is now October 11.
Eric Bank, Freelance Writer
© 2011 Hedge Fund Writer LLC
