Former Long Island advisors convicted in $10 million fraud targeting elderly, disabled clients

A federal jury has convicted twin brothers Adam and Daniel Kaplan, both former investment advisors at IHT Wealth Management, of orchestrating a years-long scheme that defrauded approximately 100 clients – including elderly and mentally disabled individuals – out of more than $10 million.

The verdict, delivered in Central Islip after an eight-week trial, found the brothers guilty of wire fraud conspiracy, wire fraud, investment advisor fraud, and money laundering conspiracy. Adam Kaplan was also convicted on additional counts, including obstruction of justice and attempted bribery of Department of Justice officials.

The case builds on an earlier complaint from the Securities and Exchange Commission, which in 2023 charged the brothers with misappropriating more than $5 million from at least 60 clients, overcharged advisory fees, and made Ponzi-like payments to conceal their activities.

A Thursday statement from the US Attorney's Office Eastern District of New York described how the Kaplans used their positions at IHT Wealth Management between May 2018 and July 2021 to exploit clients’ trust, siphoning funds for personal expenses and luxury purchases.

The Kaplans' BrokerCheck records show IHT terminated their employment in 2021 after allegations of their activities came to light. But even after that, they continued to target victims, including a woman with dementia who was unable to recognize her own husband at the time of the theft.

The government detailed a pattern in which the Kaplans sent clients contracts with fee sections left blank, later filling in percentages far higher than the roughly 1% they promised verbally; in some cases, they filled in rates more than four times the amount discussed.

They also withdrew funds from clients’ bank accounts without authorization, masking the activity by transferring equivalent sums between clients’ own accounts to keep balances unchanged. Investigators recovered more than a dozen fake contracts for services such as “life coaching” and “divorce consultation,” which were never rendered.

Victims included family members, friends, and vulnerable individuals. In one instance, the brothers took out a loan in an elderly client’s name while she cared for her dying husband, leaving her responsible for repayment. Another case involved Daniel Kaplan altering checks from a family in Arizona, including a 100-year-old grandmother, and depositing them into his own account.

"To conceal their years-long fraudulent scheme, the defendants repeatedly lied to their clients about the fraudulent charges, forged their clients’ signatures on documents, and lied to financial institutions," the government statement read in part.

Even after their termination in 2021, the two continued to misappropriate funds, targeting new and previous victims. Adam Kaplan, working with a co-conspirator, stole hundreds of thousands of dollars between 2023 and 2024, at times using his own parents’ credit cards to repay prior victims and then disputing the charges, resulting in losses to the bank.

The Justice Department also outlined efforts by Adam Kaplan to cover up the fraud, while under federal investigation, reportedly attempting to threaten, intimidate, and bribe witnesses, and destroy evidence. Prosecutors said he paid a co-conspirator over $75,000 to intimidate victims, sent threatening messages, and even sought to blackmail a federal prosecutor.

“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 Joseph Nocella, Jr., United States attorney for the Eastern District of New York. 

Christopher G. Raia, assistant director in charge at the FBI’s New York Field Office, called out the brothers' "pattern of deceit to steal millions of dollars from trusting investors.”

“May today’s conviction reflect the FBI’s continued promise to hold accountable those who target the wallets of others out of personal greed,” Raia said.