A 16-count indictment was unsealed July 25 in federal court in Central Islip charging investment advisers Adam Kaplan and his twin brother, Daniel Kaplan, both 34, with conspiracy to commit wire fraud, wire fraud, investment advisor fraud, and money laundering in connection with several schemes to steal millions of dollars from their clients.
The brothers were arrested on July 25 and were arraigned the same day before United States Magistrate Judge James M. Wicks. If convicted, they face up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Christie M. Curtis, acting assistant director-in-charge, Federal Bureau of Investigation, New York Field Office, announced the arrests and charges.
“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,” 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.”
Peace thanked the Securities and Exchange Commission for their assistance with the case.
“As alleged, the Kaplans engaged in multiple investment fraud schemes that victimized their clients, many of whom were elderly or disabled. This type of illegal activity is unfortunately all too common and even more egregious when vulnerable groups are targeted,” said Curtis. “The FBI will continue to investigate and hold accountable those who exploit their clients by misappropriating their funds for personal gain.”
As mentioned in the indictment and other public filings, between May 2018 and November 2022, Adam and Daniel acted as investment advisors for hundreds of clients. They both allegedly used their positions of trust to misappropriate millions of dollars from their clients, some of whom were elderly and disabled.
The brothers allegedly used various schemes to misappropriate the victims’ funds, including overbilling for advisory fees, siphoning money from bank accounts through fraudulent advisory fee charges and through purported investments defendants never intended to make. They allegedly lied to their clients about the fraudulent charges, forged their clients’ signatures on documents, and made misrepresentations to financial institutions.
In total, the defendants misappropriated at least $5 million, using the funds for personal expenses and to purchase luxury goods.
Each year, millions of seniors fall victim to some type of financial or confidence fraud. The FBI estimates that seniors lose more than $3 billion each year to fraudsters.
If you were a client of Adam Kaplan or Daniel Kaplan and would like to file a complaint, please visit www.iC3.gov. Please reference “Adam Kaplan” or “Daniel Kaplan” in your complaint.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Christopher Caffarone, Paul Scotti, and Adam Toporovsky oversee the prosecution.
