Gambling Debts Fueled Glen Rock Man's Real Estate Schemes, Feds Say

A Glen Rock man swindled investors out of millions through bogus real estate schemes hatched to square his massive gambling debts, U.S. Attorney Paul Fishman alleged Thursday.

Paul Mancuso, 46, of Glen Rock, and Pasquale "Pat" Stiso, 52 of West Harrison, NY, are accused of defrauding $5 million out of more than 15 people who believed they were investing in various real estate ventures and a ticket scam. 

From 2009 to 2013, Mancuso held himself as a real estate investor, broker and money lender, while Stiso, a disbarred attorney, helped facilitate deals, according to Fishman. Many of the investors had their life savings cleared in the alleged schemes, the U.S. Attorney said.

"Some of the purported projects touted by Mancuso, Stiso, and/or their co-conspirators included investments in a phony ticket scam, the development of a pizzeria at a resort in the Bahamas, the development of a casino in Atlantic City, the development of a commercial shoping center, and the 'flipping' of a piece of real estate in Matawan," the complaint filed in Newark federal court reads.

Some of the projects didn't exist, and the ones that did exist did not involve either man, the U.S. Attorney said.

Federal prosecutors allege the investors' money instead went into the pockets of Stiso, Mancuso, and their bookies.

Wire taps onto Mancuo's phone led investigators to discover the Glen Rock resident paid a bookie $612,000 in 2012 but remains $500,000 in the hole, Fishman said. 

In a conversation with an unnamed party on March 1, 2013 Mancuso said he began to suspect he was the target of a federal investigation, according to the complaint.

"During that conversation, defendant Mancuso told Individual Four that he felt he was being investigated for 'a whole f****g bulls**t Ponzi thing' involving 'a couple a million dollars,' which, according to defendant Mancuso, was 'like a one, two year charge.'"

He was arrested Thursday morning.

Both Sisto and Mancuso are charged with one count of wire fraud conspiracy and could face 20 years in prison. Sisto was released on bail; Mancuso's hearing is scheduled for Friday.