TRENTON, NJ – Sandy John Masselli, a 62-year-old man from Columbia, South Carolina, has admitted to engaging in extensive financial fraud schemes causing multimillion-dollar losses, according to U.S. Attorney Philip Sellinger.
Masselli pleaded guilty before U.S. District Judge Michael A. Shipp on nine counts including bank fraud, wire fraud, and securities fraud. Initial charges were filed against him in October 2017.
According to authorities, from September 2011 through October 2017, Masselli misled retail investors to invest in his online gaming company, Carlyle Entertainment Ltd., with false promises of an impending Initial Public Offering (IPO). Despite claims that the IPO would occur within weeks or months and generate significant profits for investors, no such event was planned. Masselli never filed any application with the NASDAQ or the New York Stock Exchange nor did he file a registration statement with the Securities and Exchange Commission.
Masselli also misappropriated investor funds for personal use and manipulated credit card companies to gain additional credit. He used various bank accounts, often under fictitious corporate entities, to conceal the provenance of the funds.
Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine. The wire fraud and securities fraud counts each have a maximum penalty of 20 years in prison and a $250,000 fine or twice the gain or loss from the offense. Sentencing for Masselli is scheduled for February 8, 2024.
FBI-Newark Special Agent in Charge James E. Dennehy stressed the agency’s commitment to protecting investors from fraud, stating, “Today’s guilty plea brings Masselli one step closer to accounting for the havoc he caused.”