Nassau Business Featured On 'Shark Tank' Defrauded Investors

CENTRAL ISLIP, NY–Joseph Falcone, who used to run a wine and liquor store based in Bethpage and Farmingdale, pleaded guilty on Monday to wire fraud for his scheme to solicit investors, the U.S. Department of Justice announced.

Falcone, 59, of Melbourne, Florida, formerly operated 3G'S VINO LLC. Once sentenced, he faces up to 20 years in prison, as well as restitution, criminal forfeiture and a fine. The guilty plea was made in front of United States Magistrate Judge Steven I. Locke.

"Falcone lured investors into believing that they were funding an up-and-coming business and then used their money to purchase his Florida home and to finance his online securities trading," Richard P. Donoghue, United States attorney for the Eastern District of New York, said via press release.

Falcone established 3G'S in December 2012. Among other products, the business distributed a single-serving of wine in a sealed glass. The concept was featured on the television program "Shark Tank."

Between September 2014 and November 2015, Falcone solicited investments and promised potential investors that he would use their money to fund 3G'S, such as by purchasing the single-serving wine product.

After buying into Falcone's promises, investors wired funds from bank accounts in New York to bank accounts in Florida controlled by Falcone. Instead of investing the money in his business like he promised, Falcone used about $527,064 of the investors' money to purchase a home in Florida and to support his online securities trading.

"Mr. Falcone didn’t use the money his investors gave him on the actual investment he sold to them," said William F. Sweeney Jr., the FBI assistant director-in-charge. "Investing in other people's ideas can be a risky venture because most backers can't see the details that would show the fraud. That's where the FBI and our law enforcement partners come in. We can see the numbers that don't add up and we can hold the fraudsters accountable."