ITHACA, N.Y. -A former Ithaca accountant pleaded guilty in federal court to defrauding investors of $10 million to pay off personal debts and make extravagant purchases.

According to, Bruce Kane said in court that he used $1.5 million of the investors’ money to pay $148,000 in rent for a waterfront condo in Florida, buy a $59,000 boat, repay $235,000 in personal bank loans, and pay $280,000 on his credit card purchases. He said he defrauded at least 16 investors across the country with his co-defendant Burton Greenberg, who pleaded guilty in November.

Kane was convicted of  conspiracy to commit wire fraud.

In a news release about the crimes, officials said the men sent investors phony “profit” payments in 2004 and 2005, which were actually a partial return of their principal investment. From 2004 to 2013, Kane and Greenberg repeatedly assured the investors via e-mail that their money was secure and profitable.

Kane faces a maximum sentence of 20 years in prison, a maximum fine of $250,000, an order of restitution in the amount of over $10 million and a forfeiture money judgment of over $10 million, officials from the U.S. Attorney’s Office in the Northern District of New York said in a news release. Kane is scheduled to be sentenced on Oct. 7 in Binghamton.

On, Feb. 19, Greenberg was sentenced to about eight years in prison, ordered to pay more than $10 million in restitution and ordered to pay a forfeiture money judgment of more than $10 million. reported that at least five of the defrauded investors were from Ithaca.

Featured photo by Brian Turner of Flickr.

Jolene Almendarez

Jolene Almendarez is Managing Editor at The Ithaca Voice. She can be reached at; you can learn more about her at the links in the top right of this box.