A Huntington software consultant who bet in the currencies market pleaded guilty Friday to federal wire and commodities fraud after telling investors their money had doubled when he had lost almost all of it — about $862,600, authorities said.
As part of his plea, Daniel LaMarco, 51, has agreed to pay back 13 victims in four states.
LaMarco started reaching out to potential investors in early 2011, but by late 2012 his commodity fund was depreciating and three years after that, the fund was almost empty, according to authorities.
He issued false monthly statements over the years reporting profits up to $1.8 million, leading investors to put more money into the fund, court papers said.
“LaMarco misled investors ... and encouraged them to invest their money in risky and volatile markets,” said U.S. Attorney Robert Capers for the Eastern District, which covers Long Island.
LaMarco’s attorney, Robert Gottlieb of Manhattan, said it was his client who went to federal authorities to confess to the scheme.
“He is a very good man who accepted responsibility by reporting his conduct to the government even before any investor filed a complaint,” Gottlieb said. “He is working mightily to pay everyone back.”
Sentencing in U.S. District Court in Central Islip is set for Dec. 16. LaMarco faces up to 30 years in prison.