An East Meadow man has pleaded guilty to grand larceny and other charges related to a Ponzi scheme he ran that lasted for over 20 years, Suffolk County prosecutors announced Monday.
Between 1989-2009, Jay Hoffman, 58, conned friends and family out of more than $2 million while he was serving as the president of Security Income Planners, Suffolk County officials said.
Hoffman indicated that he invested in the purchase of apartments which were going co-op, the purchase of debt and real estate, as well as investments with lawyers and doctors. He promised a return rate between 9-12 percent.
Bank records indicate that he would receive money from his victims ranging from $5,000 at a time to in excess of $400,000, according to the Suffolk DA's office.
"He engaged in a typical Ponzi scheme," District Attorney Spokesman Robert Clifford said. "He payed small sums to investors and kept money for his own personal use."
In some cases Hoffman did return some people's entire principal, and in some cases, did not pay anything to other investors.
On Friday, Hoffman pleaded guilty to 11 counts of grand larceny in the second degree, 11 counts of grand larceny in the third degree and two counts of scheme to defraud in the first degree.
The DA's office has indicted that they will "recommend 4-12 years in prison at his sentencing on Jan. 3."