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Multimillion Dollar Ponzi Scheme: Oceanside Man Handed Prison Sentence May 30, 2023 (0 comments)

Central Islip, NY--From the small coastal town of Oceanside, resident John Quadrino received his sentencing this past Thursday — more than three years behind bars for orchestrating a fraudulent Ponzi scheme.

[Image via Creative Commons]

According to a Patch report, in addition to his prison sentence, Quadrino was mandated to repay $3.3 million as restitution to his victims, a decision announced by federal prosecutors.

Per the report, Quadrino's fraudulent scheme was primarily executed through three entities: Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc., and Golden Glitter Trading, Inc., collectively referred to as the "Gold Purchasing Companies." He misled investors with the claim that their investments would be put towards the trade of gold, jewelry, and diamonds via these companies. But, as revealed by Breon Peace, US Attorney for the Eastern District, Quadrino did not use their funds as promised.

The report noted that in 2018, Quadrino admitted his guilt on a single count of conspiracy to commit wire fraud.

Breon Peace voiced his censure of Quadrino's actions. "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," Peace said, per the report. "Today's prison sentence punishes the defendant for the financial ruin he has inflicted on investors who had trusted him."

Throughout five years, Quadrino adeptly conducted what is recognized as a classic Ponzi scheme. According to the US Attorney's office, he repaid investors their principal and interest using new investors' capital.

The report noted that this led to a staggering investment of more than $13 million into the Gold Purchasing Companies, resulting in over $3 million in losses for the investors.

In the report, Nassau County District Attorney Anne Donnelly stated, "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."

Learn more in the Patch report.