Investment Adviser Given 58 Months for Fraud

Carlo Chiaese of Livingston, a financial adviser who used $2.4 million of his clients’ money to pay for a lavish personal lifestyle, has been sentenced to 58 months in prison.

Chiaese, who maintained a Westfield investment advisement office, was sentenced Thursday to just under five years for defrauding investors, including a New York City union pension fund, U.S. Attorney Paul J. Fishman announced.

Last March, Chiaese  before Judge William J. Martini at the federal court in Newark. Judge Martini also imposed the sentence Thursday.

Chiaese’s told his clients, including 850 pensioners in the International Longshoreman's Association, that he placed their money in bonds and other traditional securities. The money was put towards cars, country clubs other personal luxuries, including a residence at high-end Springfield development Skyline Ridge. He faced up to 20 years in prison and a fine of $5 million.

Chiaese was released on a $750,000 bond. Provisions of his bail included participating in a drug treatment program and to avoid working in finance.

Chiaese, 38, operated CGC Advisors, LLC, which the federal complaint said is located in Westfield, from 1999 to 2010. Chiaese listed his residence as Springfield when he pled guilty, but has since moved to Livingston.