Investment Advisor Charged And Pleads Guilty To Fraud

Press Release Investment Advisor Charged And Pleads Guilty To Fraud Thursday, July 17, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Joseph D’Ambrosio Stole Millions of Dollars From Friends and Family for Approximately 14 Years United States Attorney for the Southern District of New York, Jay Clayton, and Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), Edward Gallashaw, announced today the filing of an Information charging JOSEPH D’AMBROSIO with engaging in a scheme to defraud clients who believed they were investing in securities and other investments managed by D’AMBROSIO through a private investment fund he managed for friends and family. D’AMBROSIO also entered a guilty plea to the Information in a proceeding today before U.S. District Judge P. Kevin Castel, to whom the case has been assigned. “Joseph D’Ambrosio stole more than $5 million from his friends and family and hid this fraud until the money ran out,” said U.S. Attorney Jay Clayton. “Fraudsters often prey on those close to them – friends, family, members of religious and social groups – using their trust to exploit them. This Office will bring those who violate that trust to justice and recognizes Mr. D’Ambrosio’s self-reporting and acceptance of responsibility.”“For years D’Ambrosio, using deceptive tactics, allegedly stole from people who trusted him all in the name of greed,” said USPIS Acting Inspector in Charge Edward Gallashaw. “What makes D’Ambrosio’s alleged conduct especially appalling is that his victims were personal friends and family. The Postal Inspection Service will continue investigating fraud cases such as these and will hold individuals accountable who use their professional positions as a mechanism to steal from trusting investors.”According to the allegations contained in the Information:From at least in or about 2010, up to and including at least in or about December 2024, D’AMBROSIO was the operator of Hereford Holdings, a private investment vehicle for him, his family, and his friends. D’AMBROSIO told his investors that he had invested their Hereford funds in a private fund managed by an investment advisor for which D’AMBROSIO served as the chief investment officer. In reality, D’AMBROSIO misappropriated investor funds for his personal use.To deceive Hereford investors and keep the scheme going, D’AMBROSIO sent Hereford investors false investment performance letters and fraudulent K-1 tax forms that stated the investors had gained money, when they had not. When some investors sought withdrawals from Hereford, D’AMBROSIO used new investor funds to pay them in a Ponzi-like fashion to keep the scheme going. In December 2024, facing withdrawal requests he could not honor, D’AMBROSIO confessed to his crimes.D’AMBROSIO fraudulently obtained more than $5 million from investors during the course of his fraud scheme.* * *D’AMBROSIO, 66, of Bronxville, New York, is charged with one count of investment adviser fraud, which carries a maximum sentence of five years in prison.The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.Mr. Clayton praised the outstanding work of the USPIS. Mr. Clayton further thanked the Securities and Exchange Commission, which has separately filed civil charges against D’AMBROSIO.This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Matthew R. Shahabian is in charge of the prosecution. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated July 17, 2025 Topic Securities, Commodities, & Investment Fraud Component USAO - New York, Southern Press Release Number: 25-158

Press Release Investment Advisor Charged And Pleads Guilty To Fraud Thursday, July 17, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Joseph D’Ambrosio Stole Millions of Dollars From Friends and Family for Approximately 14 Years United States Attorney for the Southern District of New York, Jay Clayton, and Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (“USPIS”), Edward Gallashaw, announced today the filing of an Information charging JOSEPH D’AMBROSIO with engaging in a scheme to defraud clients who believed they were investing in securities and other investments managed by D’AMBROSIO through a private investment fund he managed for friends and family. D’AMBROSIO also entered a guilty plea to the Information in a proceeding today before U.S. District Judge P. Kevin Castel, to whom the case has been assigned. “Joseph D’Ambrosio stole more than $5 million from his friends and family and hid this fraud until the money ran out,” said U.S. Attorney Jay Clayton. “Fraudsters often prey on those close to them – friends, family, members of religious and social groups – using their trust to exploit them. This Office will bring those who violate that trust to justice and recognizes Mr. D’Ambrosio’s self-reporting and acceptance of responsibility.”“For years D’Ambrosio, using deceptive tactics, allegedly stole from people who trusted him all in the name of greed,” said USPIS Acting Inspector in Charge Edward Gallashaw. “What makes D’Ambrosio’s alleged conduct especially appalling is that his victims were personal friends and family. The Postal Inspection Service will continue investigating fraud cases such as these and will hold individuals accountable who use their professional positions as a mechanism to steal from trusting investors.”According to the allegations contained in the Information:From at least in or about 2010, up to and including at least in or about December 2024, D’AMBROSIO was the operator of Hereford Holdings, a private investment vehicle for him, his family, and his friends. D’AMBROSIO told his investors that he had invested their Hereford funds in a private fund managed by an investment advisor for which D’AMBROSIO served as the chief investment officer. In reality, D’AMBROSIO misappropriated investor funds for his personal use.To deceive Hereford investors and keep the scheme going, D’AMBROSIO sent Hereford investors false investment performance letters and fraudulent K-1 tax forms that stated the investors had gained money, when they had not. When some investors sought withdrawals from Hereford, D’AMBROSIO used new investor funds to pay them in a Ponzi-like fashion to keep the scheme going. In December 2024, facing withdrawal requests he could not honor, D’AMBROSIO confessed to his crimes.D’AMBROSIO fraudulently obtained more than $5 million from investors during the course of his fraud scheme.* * *D’AMBROSIO, 66, of Bronxville, New York, is charged with one count of investment adviser fraud, which carries a maximum sentence of five years in prison.The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.Mr. Clayton praised the outstanding work of the USPIS. Mr. Clayton further thanked the Securities and Exchange Commission, which has separately filed civil charges against D’AMBROSIO.This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Matthew R. Shahabian is in charge of the prosecution. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated July 17, 2025 Topic Securities, Commodities, & Investment Fraud Component USAO - New York, Southern Press Release Number: 25-158