A former investment adviser from Levittown has admitted to conning 38 investors out of about $3 million over a year-long span.
Eric Erb pleaded guilty Monday to wire fraud at Central Islip federal court.
“With his investors relying on him to act with professionalism and integrity, Erb instead took millions of dollars from them,” said Bridget Rohde, acting U.S. Attorney for the Eastern District of New York.
Prosecutors said the 39-year-old man promised his victims that he would follow their instructions on how to invest their money, but instead lost their money in other investments and gave victims false statements indicating they were earning profits between January 2016 and February 2017.
He also made unauthorized fund transfers and falsified payee information on checks investors wrote so that he could use the money for himself and his Babylon-based company, authorities said.
He faces up to 20 years in prison when he’s sentenced next year. As a part of his plea deal, he agreed to pay $5.3 million in restitution to victims of his crime, forfeit $215,000 in proceeds that he earned from the sale of his former Bay Shore home and the net proceeds from the sale of his Porsche and his 25-foot Regulator boat.