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 Syracuse.com, 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.
Syracuse.com reported that at least five of the defrauded investors were from Ithaca.
Featured photo by Brian Turner of Flickr.