New York Attorney General Barbara Underwood charged a Queens advisor on Wednesday, in a 99-count criminal indictment, with engaging in a scheme to defraud elderly investors by placing them in his hedge fund without their knowledge or consent.
The advisor, Dean S. Mustaphalli, owner and operator of Mustaphalli Capital Partners Fund LP, was charged with operating a multimillion-dollar securities fraud scheme that involved targeting investors who were elderly and at or near retirement.
According to the criminal indictment, Mustaphalli’s scheme brought in more than $5 million from 22 victims between June 2014 and March 2017 alone — including many southeast Queens residents.
During the relevant time period, Mustaphalli’s hedge fund collapsed, losing 92% of its value.
The indictment, unsealed in Queens County Supreme Court, charges Mustaphalli with grand larceny, forgery and securities fraud violations under the Martin Act, among other charges.