An investment advisor who offered clients the chance to participate in a private investment fund for “friends and family” admitted to defrauding investors in that fund.
According to court filings, between 2010 and the end of 2024, Joseph D’Ambrosio operated a private investment vehicle, Hereford Holdings LLC, that claimed to invest in a private fund where he served as the chief investment officer.
In fact, it’s alleged he operated a Ponzi scheme — paying returns to investors with funds raised from new investors and misappropriating money for personal use. Overall, it’s alleged he defrauded investors of at least US$5 million.
To prolong the scheme, investors were provided with falsified performance reports and fraudulent tax forms, U.S. authorities alleged.
When the scheme became unsustainable in late 2024, he self-reported the misconduct to U.S. authorities.
D’Ambrosio, who was charged with one count of investment advisor fraud, pleaded guilty.
He also faces parallel charges from the U.S. Securities and Exchange Commission, which is seeking disgorgement and civil penalties.
“Joseph D’Ambrosio stole more than $5 million from his friends and family and hid this fraud until the money ran out,” said Jay Clayton, U.S. attorney for the Southern District of New York.