Livingston Man Sentenced to 10 years for investment scam

A Livingston man was recently sentenced to 10 years in prison for defrauding Social Security and stealing more than $800,000 from investors in a scheme that involved fake overseas investments.

Paul J. LoPapa, 65, the former owner of Skyline Equities Inc. admitted he solicited investors for a program referred to as the “Bank Guarantee Program,” which they billed as a sophisticated international financial instrument facilitated through well-known financial institutions, according to U.S. Attorney Paul J. Fishman. 

In order to lure investors, LoPapa promised high returns, conducting face-to-face meetings with investors at his home. LoPapa did not invest the money, but spent it on personal items – including five high-end Mercedes-Benz automobiles, according to documents filed in the case and court statements.

LoPapa also spent investor money to pay for property taxes, health insurance premiums and credit card purchases for items and services. Investors wired approximately $815,000 into a Skyline account.

LoPapa also admitted to unlawfully receiving Social Security disability payments from August 2001 through October 2007, which totaled approximately $145,000. In his application for disability insurance benefits to the Social Security Administration, LoPapa falsely claimed he had not worked since 1990. LoPapa received benefits even though he was engaged in substantial work activity, including illegal activity in New Jersey.

In addition to prison time, U.S. District Judge Susan D. Wigenton also sentenced LoPapa to two years of supervised release and ordered him to pay $145,923 in restitution on the Social Security fraud count and $630,000 to four victims of the wire fraud.

The defendant has been in federal custody since his arrest by special agents of the FBI and Social Security Administration - Office of the Inspector General in October 2008.

LoPapa previously pleaded guilty before Wigenton to two indictments charging him with one count of conspiracy to commit wire fraud and six counts of wire fraud in connection with the investment scheme; and one count of Social Security fraud for fraudulently receiving benefits.