NEW HAVEN, Conn. (WTNH) – A federal grand jury in New Haven handed down an 18-count indictment for a Wallingford man involved in a Ponzi scheme stealing more than $1.5 million from more than ten investors.
58-year-old Joseph A. Castellano was arrested for fraud and money laundering on April 6th. In the indictment, Castellano allegedly operated various entities out of offices in Wallingford, including Casbo Investments, Wallingford Investors Limited Partnership, AIM Realty Investors, and Castellano & Company, LLC.
Castellano was a certified public accountant and owner of Castellano & Company, LLC. According to court documents, he prepared federal and state tax returns for individuals and local businesses.
The investigation uncovered in July 2007 that Castellano falsely represented clients who were in need of capital to fund businesses or real estate development projects, but were unable to secure funding from traditional sources such as financial institutions.
Castellano was charged with with ten counts of wire fraud, one count of mail fraud and four counts of securities fraud. He could face up to 20 years for each count.
Castellano was also charged with with three counts of money laundering. He could face up to 10 years on each count. Castellano was released on a $250,000 bond.