Barred New Jersey broker charged in $1 million phony loan scheme
Criminal and civil fraud charges were filed against Anthony Mastroianni Jr., who sold fake promissory notes to older investors.
The U.S. Attorney’s Office in Newark, New Jersey, has charged Anthony Mastroianni Jr. of Manalapan, New Jersey, with five counts of wire and mail fraud in a scheme involving fake promissory notes that cost 10 victims, most of them elderly, at least $1 million. Mastroianni also is charged with fraudulently obtaining a loan of approximately $96,000 meant to help small businesses during the Covid-19 pandemic.
Mastroianni, who was barred from the securities industry in 2016 by the Financial Industry Regulatory Authority Inc., nevertheless defrauded investors from January 2017 to August 2022, the U.S. Attorney’s Office said in a release.
He falsely claimed he would generate large investment profits for them through his company, Global Business Development & Consulting Corp. Instead of investing the money as promised, Mastroianni used victims’ funds on personal expenses, including household rent, automobile payments, credit card bills and cash withdrawals.
In a related civil action, the Securities and Exchange Commission has charged Global Business Development and Consulting Corp. and Mastroianni with violating the antifraud provisions of the federal securities laws.
The SEC notes that Mastroianni sold the fake promissory notes to investors who ranged in age from 64 to 82, promising them interest on the notes ranging from 50% to 175%.
The SEC is seeking disgorgement of ill-gotten gains with prejudgment interest, civil penalties and permanent injunctive relief.
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