Long Island Man Was Behind $45K Investment Scheme: DA

MINEOLA, NY — A Huntington man stole $45,450 from a former friend in an investment scheme and was arraigned Thursday, Nassau County District Attorney Madeline Singas said.

Craig Stone, 64, was arraigned on third-degree grand larceny charges (a D felony). He was released on his own recognizance and is due back in court on Nov. 9. If Stone is convicted of the top count, he faces a maximum of 2-and-a-third to seven years in prison.

"This defendant allegedly scammed a recently-widowed woman out of more than $45,000 that she had earmarked for her daughters’ education with a bogus investment scheme promising high returns at no risk," Singas said via news release. "Con artists who prey on the vulnerable are especially despicable, and we will do all that we can to seek justice for this victim and her family."

Between 2013 and 2015, the woman gave Stone, a former family friend, $45,450 to invest in "real estate vehicles" with a guaranteed return of 10 to 11 percent, Singas said. At first, the woman resisted Stone's proposal, but after he kept promising a higher return rate, she eventually signed an investment agreement with him in May 2013, prosecutors said.

At Stone's behest, the woman invested 16 times over the two years in small increments, signing a subsequent agreement each time, Singas said. Each agreement provided that the annualized return was 10 percent, except for one that she was promised an 11 percent return, officials said. She made her last payment on Sept. 23, 2015, making her total investment approximately $45,450, prosecutors said.

However, when the woman requested her money back in early 2016, Stone did not respond to her emails or repay her under the agreement's terms, Singas said. She had planned to use the investment return on college tuition for her two daughters, officials said.

Stone, who is not a licensed investment advisor, spent the money on utilities, medical expenses and made several cash withdrawals, Singas said.

Senior Investigative Counsel April Montgomery of Singas’ Financial Crimes Bureau is prosecuting this case, while Daniel Schneider represents Stone.

Schneider declined to comment.