CT Victim Defrauded Of $475k, Guilty Plea Made

NEW HAVEN, CT — A Sayville, N.Y. man pleaded guilty to an investment fraud scheme that involved taking $475,000 from a Connecticut man.

The scheme involved sale of securities of Waters Club Worldwide Inc. and Waters Club Holdings Inc., which provided yacht charter services to customers. Brian Ferraioli, 41, and Thomas Heaphy Jr. solicited buyers for shares of stock, according to the U.S. Attorney District of Connecticut office. The shares were being sold before a supposed initial public offering.

Ferraioli admitted in pleading guilty to misrepresenting the use of invested money. Ferraoili and Heaphy received about half of all the money invested and didn't have enough left over to build up the company, according to the U.S. Attorney's office.

At least 12 investors paid a total of at least $1.28 million Ferraoili gained nearly $300,000 from the scheme. He pleaded guilty to one count of conspiracy to commit mail and wire fraud. He also pleaded guilty to one count of tax evasion and conspiracy to commit mail and wire fraud in an unrelated scheme.

Heaphy also pleaded guilty in the same schemes. Both men are awaiting sentencing.

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