Barred Broker From Manalapan Charged With $1M Fraud: U.S. Attorney

NEWARK, N.J. – A debarred broker/dealer from Manalapan was charged Wednesday in U.S. District Court with defrauding 10 victims out of at least $1 million in an investment fraud scheme, U.S. Attorney Philip R. Sellinger said.

Anthony Mastroianni Jr. was also charged with fraudulently obtaining a loan of approximately $96,000 meant to help small businesses during the COVID-19 pandemic, Sellinger said.

Mastroianni Jr., 48, is charged in a five-count complaint with wire and mail fraud.

He made his initial court appearance by videoconference Wednesday afternoon in Newark federal court, a news release from the U.S. Attorney's office said.

According to a court spokesperson, Mastroianni Jr. was placed on a $100,000 unsecured bond, with a number of conditions: to turn in his five firearms, to turn in his passport, to not have any contact with victims or witnesses, to have no travel outside of New Jersey other than for medical appointments in New York, to maintain employment/residence, and to have substance abuse evaluation/treatment. The spokesperson said he appeared before Judge Cathy Waldor.

According to documents filed in this case and statements made in court:

In 2016, Mastroianni consented to being permanently barred by the Financial Industry Regulatory Authority (FINRA), which prohibited him from acting as a broker or intermediary in securities transactions.

Despite that debarment, from January 2017 to August 2022, Mastroianni defrauded victim investors, many of whom were senior citizens, by falsely and fraudulently claiming that he would generate large investment profits for them through his company, Global Business Development & Consulting Corp., the complaint said.

Instead of investing the money as promised, Mastroianni used victim funds on personal expenses, including household rent, automobile payments, credit card bills, and cash withdrawals, the complaint said.

Mastroianni defrauded 10 victims out of $1 million, according to court documents.

Mastroianni also exploited the ongoing global pandemic by submitting a false and fraudulent application to obtain $96,300 from a federal COVID-19 emergency relief loan meant for distressed small businesses. Mastroianni used the loan proceeds to make personal purchases and cash withdrawals, the U.S. Attorney's office said.

Each count of mail and wire fraud carries a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.

Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, with the investigation leading to today’s charges.

The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.

Defense counsel is Emily Sherman, assistant federal public defender, Newark.