John Masanotti Jr., 71, who now lives in Bonita Springs, Florida, was the owner and managing member of Middlesex Mortgage Group.
A former Darien resident has been sentenced to more than seven years in prison for his part in an investment fraud scheme.
John Masanotti Jr., 71, who now lives in Bonita Springs, Florida, was the owner and managing member of Middlesex Mortgage Group.
According to prosecutors, between 2016 and 2023, Masanotti defrauded 14 clients of more than $4 million by using their money for personal expenses, and to pay returns to other clients in a pooled investment fund.
Masanotti provided clients with fraudulent monthly account statements from Middlesex that showed fake investment profits, prosecutors said. He also failed to report to the IRS more than $3 million in income, resulting in a tax loss of nearly $1 million.
Masanotti has agreed to pay $4.3 million in restitution, and to cooperate with the IRS to pay all back taxes, penalties and interest.
He was arrested in May 2024. His case was heard in U.S. District Court in New Haven. In October 2025, he pleaded guilty to one count of wire fraud and one count of tax evasion. He is now required to report to prison on March 19.
