An Oceanside man was indicted for conning $6 million from 80 investors in his Ponzi scheme disguised as several jewelry trading companies over a five-year span, federal authorities said.
John Quadrino was charged with wire fraud and wire fraud conspiracy Thursday at Central Islip federal court.
“Rather than carrying out his plan as promised, Quadrino dangled a shiny prospect in front of his victims while funneling their money into a scheme to defraud others and enrich himself,” said William Sweeney, Jr., assistant director of the FBI’s New York field office.
Prosecutors said the 51-year-old suspect promised large returns to victims that invested $13.1 million in his three companies—Princess Cut Industries, Inc., Sassy Jewelry Buyers, Inc., and Golden Glitter Trading, Inc.—that he billed as selling gold, jewelry and diamonds to refineries and jewelers.
Instead, Quadrino used the money from new investors to pay “interest” to old investors and spent the money on himself and gambling, according to investigators. The victims lost $6.3 million in the process, authorities said.
Quadrino is scheduled to be arraigned Thursday before Magistrate Judge Arlene Lindsay. He faces up to 20 years in federal prison, if convicted.