John Masanotti, Jr., a 69-year-old man from Bonita Springs, Florida, was arrested on Thursday following a federal grand jury indictment that accused him of orchestrating an investment fraud scheme exceeding $4 million. He is scheduled to appear in Hartford federal court next Wednesday.
Masanotti, a former resident of Darien, owned Middlesex Mortgage Group, LLC, also known as Middlesex Group, which was based in Darien. According to the U.S. Attorney for the District of Connecticut, he acted as an investment advisor and falsely claimed to manage pooled investments for clients.
Between 2016 and 2023, prosecutors allege that Masanotti defrauded at least 10 clients by misappropriating their funds for personal expenses and to pay returns to other investors. He provided clients with fraudulent monthly statements that falsely reported investment profits.
The indictment includes eight counts of wire fraud, each carrying a potential maximum prison sentence of 20 years. Additionally, Masanotti faces 11 counts of illegal monetary transactions, each with a maximum sentence of 10 years. He is also charged with making false statements to the FBI and falsifying records during the investigation.
Masanotti was released on a $100,000 bond after his initial court appearance in Fort Myers and is expected to face serious legal consequences as the case unfolds.