DA: Montauk entrepreneur ripped off his customers

A Montauk entrepreneur who owned a food delivery service and a company specializing in East End beach services has been charged with stealing $325,000 from customers and a contracted payroll service, Suffolk prosecutors said. 

Mark Ripolone, 34, made withdrawals for personal expenses after obtaining customers' bank account information from businesses he owned, 123 Delivery and Hampton Management Group Inc., Suffolk prosecutors said in a news release.

He allegedly used the money to pay his credit card and cellphone bills and his mortgage, according to prosecutors.

A Newsday story profiling Ripolone in 2016 after he had started 123 Delivery, said the then-new delivery and concierge service "will transport just about anything from any restaurant, store or other business in Montauk to any place in the East End hamlet, or make arrangements for tours and other activities."

A friend's connections led to an endorsement of Ripolone's delivery service by Kevin Harrington, one of the original billionaire entrepreneurs from ABC’s hit show, “Shark Tank,” according to the story.

Ripolone allegedly signed up with a payroll company and gave them two accounts — one for where payroll is deposited to pay employees, and another to fund the payroll, said Tania Lopez, spokeswoman for the Suffolk County District Attorney. Ripolone had money sent into his personal bank account instead of depositing it to fund the payroll, Lopez said. The payroll company, which was not named, debited money from a business account to fund payroll and there were no funds, Lopez said.

Prosecutors did not give an update on the current owner of the businesses. Hampton Management Group Inc. specialized in providing "luxury beach chair set ups and decorations for special events," prosecutors said.

According to Ripolone’s LinkedIn profile, he founded 123 Delivery in July 2015 and worked there until Sept. 2018. He became president of Hampton Management Group Inc. in May 2019, according to his LinkedIn profile. 

The thefts occurred from Sept. 1, 2018, to Oct. 15, 2021, prosecutors said.

“This defendant allegedly financially exploited his customers, most of them small businesses, to steal funds from their bank accounts and allegedly took money from a payroll company to pay for employees who did not exist,” Suffolk District Attorney Ray Tierney said in the release.

Ripolone faces at least two counts of second-degree grand larceny and two counts of third-degree grand larceny, Suffolk prosecutors said. He was arraigned in East Hampton Justice Court and was released on his own recognizance.

Ripolone's attorney, Susan Menu of East Hampton, declined to immediately comment Tuesday.

He is due back in court on July 7 and July 8.