Feds: Brothers from Great Neck accused of stealing at least $5M from investment clients
Twin brothers from Great Neck who worked as financial advisers were arrested and charged Tuesday for allegedly stealing at least $5 million from clients, among them the elderly and vulnerable, according to a federal indictment.
Prosecutors with the U.S. Eastern District of New York unsealed the 16-count indictment Tuesday against Adam Kaplan and Daniel Kaplan, both 34, who operated the Financial Services Firm, alleging they defrauded at least 50 clients between May 2018 and November 2022.
A grand jury indicted them July 18 on charges of conspiracy to commit wire fraud, wire fraud, investment adviser fraud and money laundering.
Prosecutors filed a bail memo to Judge James M. Wicks requesting the brothers be held, pending a $5 million bond.
Both men entered not guilty pleas Tuesday and were released on $2.5 million bond, secured by real property, their attorneys said.
"Adam and Daniel Kaplan are innocent, and look forward to being vindicated at trial," attorneys Eric M. Creizman and Michael Tremonte said in a statement.
Prosecutors said the brothers acted as investment advisers to hundreds of clients and misappropriated millions of dollars through various schemes, including overbilling advisory fees, siphoning money through fraudulent fee charges and making investments their clients never intended to make, prosecutors said.
“As alleged, the Kaplans engaged in years-long schemes violating the trust that their clients, some of them elderly and vulnerable, had placed in them to manage their money safely and honestly,” U.S. Attorney Breon Peace said in a statement. “The defendants lined their pockets at the victims’ expense, but with their lies and frauds exposed, they will be held to account for their conduct.”
Prosecutors said the Kaplans lied to clients about fraudulent charges to their accounts, forged signatures on documents and made false misrepresentations to banks and financial institutions.
Authorities said the brothers used the alleged stolen funds for personal expenses and luxury goods.
If convicted, they each face up to 20 years in prison.
Past clients of Adam and Daniel Kaplan can file complaints with the Internet Crime Complaint Center at ic3.gov.
John Asbury is a breaking news and general assignment reporter. He has been with Newsday since 2014 and previously worked at The Press-Enterprise in Riverside, California.
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