Twin Brother Investment Advisors From Nassau Defraud Clients Out Of Millions: DOJ

GREAT NECK, NY – Adam and Daniel Kaplan of Great Neck, investment advisors and twin brothers, were convicted of wire fraud conspiracy, wire fraud, investment advisor fraud, and money laundering conspiracy on Thursday by a federal jury in Central Islip, according to the U.S. Department of Justice.

In addition, Adam Kaplan was also found guilty of another count of conspiracy to commit wire fraud, bank and wire fraud conspiracy, money laundering, and attempted obstruction of justice while on pre-trial release, the DOJ said.

According to the DOJ, Daniel Kaplan was found guilty of 15 of the 17 charges, while Adam Kaplan was convicted on all 21 counts.

They have been in an eight-week trial, starting on Sep. 22, before the U.S. District Judge Joan M. Azrack for multiple charges of defrauding clients, including elderly and disabled individuals, out of millions of dollars, U.S. Attorney Joseph Nocella, Jr. said.

“With today’s verdict, Adam and Daniel Kaplan stand convicted of stealing millions of dollars from clients, some of whom were elderly and disabled, who trusted the defendants to invest their money, but instead were betrayed by these ruthless thieves,” he said. “Adam Kaplan is facing additional, very serious consequences for seeking to undermine the criminal justice process by attempting to threaten victims and witnesses and bribe Department of Justice officials.”

The brothers were first arrested in July 2023 on multiple charges, the DOJ said.

Between May 2018 and July 2021, the Kaplan brothers worked as investment advisors at IHT Wealth Management, stealing at least $10 million from clients, and then used those funds for personal expenses through various schemes, the DOJ said.

According to the DOJ, when first starting their relationship with a client, they would tell their client their fee is one percent per year, yet the contract they would send to the client had that space marked blank. The brothers would fill in a higher percentage than what they originally promised, the DOJ said.

They also reportedly siphoned money from their clients’ bank accounts, hid the charges from the clients, and then transferred money from the clients’ own brokerage accounts so it appeared that they never lost any money, the DOJ said.

They were able to conceal their scheme by lying to clients and institutions, forging signatures, altering checks, and tricking clients, the DOJ said. One of the clients that they stole from was an elderly woman caring for her dying husband, and another was a 100-year-old grandmother, the DOJ said.

According to the DOJ, their fraudulent schemes did not stop once they were fired by IHT in July 2021. Another client they stole from was a woman with dementia, the DOJ said. Adam Kaplan befriended her, escorting her to the bank so she could sign documents that gave them permission to take money from her, the DOJ said. She could not recognize her own husband of decades at this time, the DOJ said.

The DOJ said that between 2023 and 2024, Adam Kaplan worked with a co-conspirator, whom Adam believed to be a violent felon with connections to the mafia and on the dark web. Adam promised clients, those of whom he had already stolen from, that he would invest their money and make back what was lost, the DOJ said. Instead, he charged his own parents’ credit cards and then Adam disputed the claims, which led to the bank losing money, the DOJ said.

While a federal grand jury investigation took place between April 2023 and September 2024, Adam tried to influence, obstruct, and impede the investigation, the DOJ said. He attempted to do so by threatening, injuring, and paying off witnesses, as well as attempting to destroy evidence, the DOJ said.

The DOJ said that Adam Kaplan ordered the co-conspirator to try to find “dirt” on a prosecutor so Adam could blackmail the prosecutor. Adam paid the co-conspirator $75,000 to threaten and injure former defrauded clients, the DOJ said.

According to the DOJ, after the twin brothers were arrested, Adam obstructed justice further by ordering the co-conspirator to bribe the DOJ officials — the bribes were never paid.