LI Man Gets 10 Years In Prison For Scamming Elderly Out Of $12 Million

SYOSSET, NY — A Syosset man was sentenced to three and a half to 10 and a half years in prison today for his role in a Ponzi scheme that scammed $12 million from nearly 50 people, many of them senior citizens.

Matthew Eckstein, 52, pleaded guilty on Feb. 8 to first-degree larceny and fourth-degree conspiracy. He had originally pleaded guilty to the charges on Sept. 26, 2019, but later withdrew his plea. A new indictment against him was secured in August 2020, but the court proceedings were delayed by the COVID-19 pandemic.

“This defendant preyed upon seniors and hard-working men and women, duping them out of their retirement savings and other finances, and using the money to fund business ventures and pay for his own personal expenses,” said Nassau County District Attorney Anne Donnelly. “I am grateful to my prosecutors for ensuring that Eckstein pays for his crimes with significant prison time, and to my Civil Forfeiture Bureau, for their diligent work securing nearly $5.6 million in restitution for the victims. I also want to thank all of our partners on the local, state, and federal levels for their great contributions to this investigation and prosecution.”

According to Donnelly, starting in 2015, Eckstein agreed to invest $385,000 on behalf of an elderly client, whom he worked for as a personal accountant and financial advisor, into the Hicksville-based Conmac Funding Corp., a company owned by Eckstein's co-defendant, Kevin Brody. Eckstein, who urged his client to invest, told him the investement was safe, had no risk, and that the principal would be returned after two years with four percent interest.

After two years, the victim asked for their money in January 2017, but only received $26,699. Eckstein claimed Conmac was an insurance company and that the money had to be paid back in installments. The victim continued to ask for their money, but Eckstein stopped communicating.

The victim reported the incident to officials, which launched an investigation by the DA's office in 2017. A search warrant executed by DA investigators, the U.S. Postal Inspection Service, FBI, and the New York State Comptroller’s Office at Eckstein’s home office in April 2018 yielded thousands of pages of financial documents.

The case showed that Eckstein and Brody victimized nearly 50 people out of $12 million. Many of the victims were senior citizens who had entrusted the two men with their retirement savings.

“Matthew Eckstein brazenly took advantage of people who trusted him to line his own pockets and fund his opulent lifestyle," said state Comptroller Thomas P. DiNapoli. "Stealing the savings of senior citizens is unconscionable. I commend the work of District Attorney Donnelly, the Federal Bureau of Investigation and the United States Postal Inspection Service and thank them for their continued partnership with my office and diligence in bringing Eckstein to justice."

Eckstein and Brody provided victims with a username and password for Conmac's website to view their account statement and growing account balance, leading victims to believe that their principal investment was with Conmac Funding and earning interest. However, instead of investing the money into Conmac Funding, the two used the money to fund other business enterprises – including hamburger restaurants – personal purchases, and paying other victims of the scheme.

Many of the victims were lured into the scheme by Eckstein who owned another firm called Sisk Investment Services that he ran out of his Syosset home. He convinced his existing clients, who trusted him, to invest in Conmac Funding.

The victims were from Massapequa, Seaford, Glen Cove, Oyster Bay, Plainview, Woodmere, Wantagh, Hewlett Harbor, Woodbury, Hicksville, Merrick, Oceanside, Smithtown, Melville, Dix Hills, Farmingdale, Miller Place, Staten Island, Brooklyn, Manhattan, Queens, Westchester, Connecticut, Forida, California, South Carolina, North Carolina, Pennsylvania and New Jersey.

Additionally, Eckstein used some of the money for the down payment on his home, which had a swimming pool and tennis court.

Eckstein and Brody were arrested in September 2018.

Brody, of Pennsylvania, was sentenced on Sept. 12, 2019, to two and a third to seven years in prison after pleading guilty to second-degree grand larceny and fourth-degree conspiracy.

The Nassau DA’s Civil Forfeiture Bureau was able to freeze all of Eckstein's and Brody’s known assets while their cases were pending, including bank accounts and real estate properties, which allowed the office to distribute more than $5.6 million in restitution to the victims following the prosecutions.

“Eckstein made his biggest mistake by using the Postal Service to further his scheme to defraud investors in Conmac Funding Corp. out of millions," said Daniel Brubaker, United States Postal Inspection Service inspector-in-charge of the New York Division. "Instead of investing his client’s money safely, Eckstein, a registered CPA, used their funds to pay Conmac’s bills and for his own personal interests. He took advantage of investors’ trust in his credentials and stole their life savings. Postal Inspectors and our law enforcement partners will tirelessly pursue anyone who targets investors, especially the elderly, for fraud. Today’s sentencing is solid proof that anyone who defrauds investors will pay a heavy price for their crimes.”