Nassau Man Charged With Running Multi-Million Dollar Ponzi Scheme

An Oceanside man was charged on Thursday for running a Ponzi scheme over five years using-gold purchasing companies he owned.

John Quadrino, 51, was charged with wire fraud and wire fraud conspiracy for allegedly using his companies, Princess Cut Industries Inc., Sassy Jewelry Buyers Inc. and Golden Glitter Trading Inc. to run the Ponzi scheme.

The charges come after a multiyear investigation into Quadrino by the United States Attorney's Office, the FBI and the Nassau County District Attorney's Office.

"As alleged, the defendant deceived investors with the promise of purchases of gold and other valuables and guaranteed returns, leading to his own enrichment and victim losses of over $6 million,” said Acting United States Attorney Rohde. “We will not permit such conduct to go unanswered.”

According to officials, Quadrino told investors that his companies sold gold, jewelry and diamonds to refineries and jewelers, and asked them to invest large sums of money for fixed periods that would result in a guaranteed return at the end of the period. But prosecutors say that Quadrino never purchased any large quantities of goods. Instead, they say, he engaged in a classic Ponzi scheme over five years, using money from investors to pay off other investors.

As a result of the alleged scheme, prosecutors say, more than 80 people invested about $13.1 million and suffered losses of about $6.3 million.

Prosecutors say that Quadrino used the money to issue himself checks and pay for personal gambling expenses.

“This defendant is accused of pilfering the savings of dozens of innocent investors by promising them great returns, but instead he allegedly gambled their money away,” Nassau County District Attorney Madeline Singas said. “Fortunately, working with our law enforcement partners at the Eastern District of the U.S. Attorney’s Office and the FBI, we were able to end this alleged Ponzi scheme before more investors were victimized.”

If convicted, Quadrino could face a maximum sentence of 20 years per count.

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