Rye Man Sentenced in $1.3 Million Investment Fraud Scheme

Rye resident Charles Principato, 53, was sentenced in Connecticut to 60 months in prison, followed by three years of supervised release, for “engaging in a scheme to defraud investors of more than $1.3 million,” announced United States Attorney Deirdre M. Daly.

According to Daly, from January 2011 to February 2014, Principato acted as principal of Prince Direct, Inc., “an entity that he represented to victim-investors as being in the business of marketing products through advertising such as ’infomercials.’”

He solicited money from victims, including Connecticut residents, for the stated purpose of funding the business operations of Prince Direct. “However, instead of using victims’ money for the stated purposes, Principato used it for his own personal expenses, including for vacations and home renovations, and for gambling,” according to Daly. He scammed the victims of $1.3 million.

In addition to the prison sentence, Chief U.S. District Judge Janet C. Hall also ordered Principato to pay restitution in the amount of $1,809,235, which includes additional monies he owed to investors.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Susan L. Wines.