Crime & Safety
Stamford Man Pleads Guilty to $17 Million Fraud
He used the money for private school tuition, a luxury apartment and other personal expenses.
STAMFORD, CT- City man Carlton Cabot, 53, pleaded guilty to more than $17 million of securities fraud.
Cabot is the former owner and CEO of Cabot Investment Properties. He was accused of taking part in a scheme to defraud real estate investors.
“Yesterday, Carlton Cabot, CEO of Cabot Investment Properties LLC, admitted to taking over $17 million in investor funds and spending it on himself, including for private school tuition for his family and a luxury vacation apartment," said U.S. Attorney Preet Bharara. "Cabot camouflaged his fraud by doctoring financial statements and lying to his investors.”
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CIP oversaw 18 tenants in common securities, which allow investors to collective own real estate and get a cut of rental income.
Cabot faces a maximum sentence of 20 years in prison. As part of the plea agreement he will owe $17 million in restitution and forfeiture.
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