An East Haven man could get 20 years in prison following his conviction for an investment fraud that cheated investors out of about $2.4 million, federal prosecutors say.
John D’Auria, 41, pleaded guilty Monday in Hartford federal court to one count of wire fraud. D’Auria also faces a maximum $4.8 million fine and a restitution order when he is sentenced Oct. 6, Connecticut U.S. Attorney Deirdre M. Daly said. He is free on $100,000 bond.
According to investigators, D’Auria was a licensed and registered investment adviser but lost his license sometime around 2011. From 2010 to 2014, he defrauded about eight investors who gave him money to invest on their behalf. Using the business name Fifth Street Capital, D’Auria instead comingled their funds, some of which he used for his personal benefit, authorities said.
He further misled them with fake investment statements purporting to show their returns and account balances, investigators said.
