Oceanside man admits Ponzi scheme of nearly 5 years

An Oceanside man pleaded guilty Tuesday to running a Ponzi scheme that, prosecutors said, bilked dozens of investors out of millions of dollars over nearly five years.

John Quadrino, 52, who had promised investors profits on their investments in his precious metal businesses, which did not exist, pleaded guilty to one count of conspiracy to commit wire fraud before U.S. Magistrate Arlene Rosario in Central Islip.

Quadrino admitted that he used the money he got from new investors to pay old investors and his personal expenses. There were 84 victims, prosecutors said at the time of Quadrino’s arraignment on Mar. 30, 2017.

“I apologize for my actions,” Quadrino told the judge.

In exchange for his admission of guilt, prosecutors dropped the remaining charges, five counts of wire fraud.

Assistant U.S. Attorney Artie McConnell told the judge that Quadrino defrauded investors out of at least $3.5 million. Under the sentencing guidelines, McConnell said, Quadrino’s potential prison term could be 51 to 63 months.

Quadrino’s attorney, Joseph Conway of Mineola, disputes the loss claimed by the government, and said his client’s potential prison term is 33 to 41 months.

“We believe some of them are not victims or they have been paid back more than the government is crediting,” Conway said in an interview afterward.

A sentencing date has not been set.

Quadrino was arrested after two investors filed complaints with the Nassau County district attorney, according to a source familiar with the case.

At the time Quadrino was indicted, prosecutors said he ran two companies — Princess Cut Industries Inc. and Golden Glitter Trading Inc. — from his home on Henry Street. Quadrino was one of three partners in Sassy Jewelry Buyer Inc., based in East Meadow.

The companies held themselves out as gold traders that claimed to buy large amounts of gold, jewelry and diamonds, and sell them to refineries and jewelers.

In all, the companies collected $13.1 million from investors, including four residents of Jericho, Seaford, Westbury and Upper Brookville from September, 2011 to December, 2016, according to the indictment. The investments ranged from $40,000 to more than $100,000.

Although the indictment mentioned that “others” took part in the scheme, Conway said no one else has been charged in connection with the fraud.

Investors were not named in the indictment.

An Oceanside woman who appeared in court and asked not to be identified, said she and her husband lost money in the scam. When the couple asked Quadrino for their money back, “He told me ‘Bear with me. I am moving money around,’ ” the husband recalled in an interview later. “That’s all he kept telling me.”