Twin brothers from Great Neck were convicted of running a years-long fraud scheme in which they stole more than $10 million from clients – including elderly and mentally disabled victims – on Nov. 13, according to the U.S. Department of Justice.
“With today’s verdict, Adam and Daniel Kaplan stand convicted of stealing millions of dollars from clients, some of whom were elderly and disabled, who trusted the defendants to invest their money, but instead were betrayed by these ruthless thieves,” said U.S. Attorney Joseph Nocella.
A federal jury in Central Islip convicted Adam and Daniel Kaplan, both 36, according to the U.S. Department of Justice. The verdict followed an eight-week trial before District Judge Joan M. Azrack. Prosecutors said the Great Neck residents defrauded roughly 100 clients of more than $10 million while working as investment advisers at IHT Wealth Management.
The brothers were found guilty of conspiracy to commit wire fraud, wire fraud, investment adviser fraud and conspiracy to commit money laundering. Federal prosecutors said the brothers used their positions as investment advisers at IHT Wealth Management to defraud about 100 victims between 2018 and 2021. The brothers promised clients – many elderly, disabled, or family and friends – annual advisory fees of about 1% and then submitted contracts with the fee section left blank. After clients signed, the brothers filled in dramatically higher percentages.
Prosecutors said the brothers also withdrew money from clients’ bank accounts without authorization, forged signatures on financial documents, created fake “life coaching” and “divorce consultation” contracts to justify charges and lied to victims and financial institutions to cover their tracks.
“These defendants exploited the trust and vulnerability of more than 100 victims to selfishly enrich themselves,” said FBI Assistant Director in Charge Christopher G. Raia.
Adam Kaplan was also convicted of additional fraud counts and attempted obstruction of justice. Prosecutors said he paid a co-conspirator over $75,000 to intimidate victims and witnesses, destroy evidence and gather compromising information about a federal prosecutor. According to the DOJ, Adam Kaplan told a co-conspirator “that one victim needed ‘to fear,’ and another should be ‘peeing blood / missing teeth.’”
Attorneys for the brothers, Mark S. Cohen and Michael Tremonte, said in a statement that they will appeal the verdict.
“We respect the jury’s verdict, but we are deeply disappointed by the outcome,” they said. “Adam and Daniel Kaplan maintain their innocence and will continue to vigorously fight the charges against them.”
The brothers now await sentencing.
