FORT MYERS, Fla. — A Florida man was arrested on Thursday two days after a federal grand jury in New Haven returned a 21-count indictment charging him with offenses related to an alleged investment fraud scheme that cost clients over $4 million, according to a release from the U.S. Attorney for the District of Connecticut.
John Masanotti, Jr., 69, of Bonita Springs, Fla. appeared in federal court in Fort Myers, Fla. on Thursday, according to prosecutors, who said he was released on a $100,000 bond but is scheduled to be arraigned in Hartford federal court on May 15.
Masanotti, a former resident of Darien, owned and managed Middlesex Mortgage Group, LLC, also known as Middlesex Group, LLC, based in Darien, as alleged by the indictment. Prosecutors said that, through the Middlesex group, Masanotti acted as an investment advisor and “purported” to manage a pooled investment vehicle on behalf of investors.
Masanotti claimed to clients and potential clients that invested funds were going to be, and were in fact, pooled together and invested in foreign currency and other investments, prosecutors said.
But prosecutors say between approximately 2016 and 2023, Masanotti defrauded at least 10 clients of more than $4 million by using their money for personal expenses, and to pay returns to other clients. He allegedly provided clients with fraudulent monthly account statements from Middlesex that displayed fake investment profits.
Additionally, the indictment alleges that Masanotti made false statements to the Federal Bureau of Investigation during the investigation and filed false records while attempting to obstruct the investigation, prosecutors said.
The indictment charges Masanotti with eight counts of wire fraud, which carries a maximum prison sentence of 20 years per count, according to prosecutors. He is also charged with 11 counts of making illegal monetary transactions, which carries a maximum term of imprisonment of 10 years per count.
The indictment also charges him with one count of making false statements, which carries a maximum prison sentence of five years, and one count of falsification of records in a federal investigation, which carries a maximum term of imprisonment of 20 years, according to prosecutors.
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Dalton Zbierski is a digital content producer and writer at FOX61 News. He can be reached at dzbierski@FOX61.com.
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