The Queens, New York advisor who ran a massive hedge fund scheme targeting elderly investors while running the now-defunct Mustaphalli Capital Partners Fund was convicted and sentenced to 3-9 years in prison, New York Attorney General Letitia James said Friday.
After pleading guilty to 22 felony charges, including grand larceny and securities fraud under the Martin Act, Dean S. Mustaphalli was sentenced Friday in Queens County State Supreme Court.
He also paid $260,000 in criminal restitution and signed confessions of judgment in favor of the victims named in the indictment, totaling more than $2.3 million, according to James.
As part of a separate civil order filed by the Office of the Attorney General in New York County State Supreme Court, Mustaphalli entered into an additional judgment in favor of his victims in the amount of $6 million, and he is permanently barred from engaging in any business related to the issuance or sale of securities in New York, James said.
In 2018, New York Attorney General Barbara Underwood, James’ predecessor, charged Mustaphalli in a 99-count criminal indictment, claiming he engaged in a scheme to defraud elderly investors by placing them in his hedge fund without their knowledge or consent.