New York State Supreme Court Justice James A. Yates sentenced Louis Caiola, 42, of the Bronx, to four to eight years in prison. The defendant pleaded guilty to Grand Larceny in the Second Degree and Grand Larceny in the Third Degree in connection with his participation in the scheme.
The defendant and other members of the scheme set up a phony investment firm called Schroder & Co., Inc. They chose this name specifically because of its similarity to Schroders Investment Management North America, Inc., a legitimate asset management company. In 2003 and 2004, the members of the conspiracy used the name of an actual broker at the legitimate asset management company to solicit investments from victims by telephone and by mailing them glossy brochures.
In order to cover their tracks and perpetuate the fraud, the defendants mailed phony statements to the investors which falsely indicated that securities had been purchased. Rather than purchasing securities with investors’ funds, the members of the scheme pocketed the proceeds.
Also charged in the scheme was co-conspirator Salvatore Braccia, 42, of Staten Island, who pleaded guilty to Grand Larceny in the First Degree in connection with his participation in the scheme. He is awaiting sentencing. Another co-conspirator, Daniel Lettieri, 47, of Lynbrook, pleaded guilty to Conspiracy in the Fourth Degree in connection with his participation in the scheme. He has been sentenced to a six-month jail term and five years of probation.
This case was prosecuted by Assistant Attorneys General Whitman Knapp and Elizabeth Nochlin, under the supervision of Janet Cohn, Chief of the Criminal Prosecutions Bureau, Laurie Israel, Deputy Chief of the Criminal Prosecutions Bureau, and Securities Fraud Unit Chief Harold Wilson. Special Investigator Sylvia Rivera assisted in the investigation, under the supervision of Deputy Chief Henry Lemons.
