Former Stockbroker Re-sentenced For Not Paying Back Victims

GREENE COUNTY, NY — A former stockbroker, convicted of stealing money more than $5.4 million from his clients, has been re-sentenced in Greene County Court for failing to pay restitution to his victims. State Attorney General Barbara D. Underwood announced Friday Franklin S. Marone, 55, of Queens, will be sentenced to a total of 10-1/3 to 29 years in state prison.

Between 1998 and 2004, Marone, a former stockbroker, stole more than $5.4 million from his fellow members of the ski patrol at a Catskills mountain resort through an elaborate investment fraud scheme.

After being convicted in 2004 of first-degree grand larceny and scheme to defraud, both felonies, Marone was sentenced to six to 18 years in state prison and ordered to pay more than $4.6 million in restitution to his victims.

He still owes $1.2 million to the victims and began missing his court-ordered restitution payments after he was released from parole in early 2014.

After continued failure to make the restitution payments, a Greene County Court judge ordered a hearing and directed Marone to complete financial disclosure affidavits.

In July and August 2017, Marone filed two sworn affidavits with the court, saying that he had no assets and minimal income.

On June 11, a restitution hearing resulted in a finding that Marone had willfully failed to pay restitution to his 29 prior victims.

The court heard evidence that he only paid a total of $15,000 between 2013 and 2017, while he received more than $55,000 in checks payable to himself or cashed on his accounts, spent more than $64,000 in upgrades to Jeep Wranglers for customized oversized tires, wheels, a light bar and other equipment, spent more than $18,000 for a gym and spa membership, spent more than $4,000 on a cruise and pawned more than $9,000 worth of property.

On June 21, Marone was re-sentenced to 8-1/3 to 25 years in state prison for his failure to pay restitution. The court also ordered the prior $1.2 million restitution order to remain in place, so that his victims may receive compensation in the future.

“After already being convicted once, the defendant showed no remorse for his prior victims and completely disregarded the law,” said Attorney General Underwood. “No matter how covert or complex the scheme, my office will continue to work with our law enforcement partners to root out fraud and protect New Yorkers from financial exploitation.”

Also on June 21, Marone entered a guilty plea to two counts of first-degree offering a false instrument for filing, felonies, and two counts of third-degree perjury, misdemeanors, for filing false affidavits with the court concealing his assets and income.

The combined sentence will result will result in a total state prison term of 10-1/3 to 29 years.

Underwood said Marone still faces additional charges in Queens County.

According to prosecutors, he allegedly stole more than $270,000 from multiple victims, including his 88-year-old mother, between Jan. 2014 and Sept. 2017.

Between May and June 2016, authorities said Marone impersonated his mother in a series of recorded phone calls with a financial institution in order to steal more than $50,000 from her account.

He also allegedly stole more than $45,000 from an ex-girlfriend and a family friend, using the money to buy Jeep upgrades, cruises and premium gym memberships for himself, his current girlfriend and their families.

The Queens County indictment charges Marone with second-degree grand larceny, third-degree grand larceny, first-degree scheme to defraud and two counts of first-degree identity theft, all felonies, and second-degree criminal impersonation, a misdemeanor.

His bail was set at $500,000 bail or $1 million bond. Marone is next due in Queens Supreme Court July 12.

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