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Former NJ Financial Advisor Charged With Fraud in Alleged Ponzi Scheme Targeting Elderly Investors

By kcora on
New Jersey Hillsborough Township

A former registered investment advisor was arrested today on charges stemming from an investment fraud targeting elderly investors, U.S. Attorney Craig Carpenito announced.

Officials say Daniel Rivera, 48, of Hillsborough, was indicted by a federal grand jury on July 31, 2018, on three counts of wire fraud. He is scheduled to appear today before U.S. Magistrate Judge Joseph A. Dickson in Newark federal court.

According to the indictment:

From 2008 through 2017, Rivera allegedly engaged in an investment fraud where he solicited primarily elderly investors to invest their money in a company called Robbins Lane Properties Inc. Rivera told investors the company was staffed by experienced real estate professionals who used investor funds to invest in real estate ventures. Rivera allegedly told investors that by investing in Robbins Lane, senior investors would share in the company’s investment portfolio by lending it money to invest in real estate. Rivera further promised investors that they would receive a guaranteed monthly income, and that the company’s rate of return was based on secure real estate investments in the company’s portfolio.

In reality, Robbins Lane had no employees, no real estate portfolio, and the monies used to pay investors as a purported return on their investments was from funds he received from other investors. Rivera allegedly also used funds sourced from investors to pay his personal and unrelated business expenses, including paying his child’s college tuition and sorority fees.

The counts of wire fraud with which Rivera is charged each carry a maximum potential punishment of 20 years in prison and a fine of up to $250,000, or twice the gross loss or gain caused by the offense.