LI Victims Paid Back Millions In Massive Ponzi Scheme

SYOSSET, NY — Dozens of Ponzi scheme victims in New York City, Long Island and elsewhere in the country were paid back millions Tuesday following guilty pleas by a Pennsylvania businessman and Syosset financial advisor, prosecutors announced. In September 2018, Kevin Brody and Matthew Eckstein were arrested for scamming 50 people, many of them seniors, out of more than $12 million, prosecutors said.

Brody and Eckstein promised to invest the victims' money, but instead used it to fund other business ventures — including hamburger restaurants — as well as for personal use and to pay back other victims. Eckstein used some money for a down payment on his home, which has a swimming pool and tennis court.

Eckstein, 49, of Syosset, pleaded guilty Sept. 26 to felony charges of grand larceny and conspiracy. He faces up to 10 years in prison at his Dec. 13 sentencing.

Brody, 55, was sentenced to 2 1/3 to 7 years in prison Sept. 12 after pleading guilty to theft and conspiracy charges.

The Nassau district attorney's office froze the assets they knew about, including bank accounts and real estate properties. This allowed prosecutors to distribute $4.6 million in restitution to 48 victims. Prosecutors are still trying to collect more money for the victims.

Each victim received a proportional share of the money based on how much they lost. Payments ranged from $10,000 to $300,000. The Long Island victims are from Massapequa, Seaford, Glen Cove, Oyster Bay, Plainview, Woodmere, Wantagh, Hewlett Harbor, Woodbury, Hicksville, Merrick, Oceanside, Smithtown, Melville, Dix Hills, Farmingdale and Miller Place. Others hailed from New York City and Westchester County, as well as Norwalk, Connecticut; Jupiter, Florida; Redlands, California; South Carolina; North Carolina; Pennsylvania and New Jersey.

"These thieves took advantage of the trust investors placed in them and scammed their victims —in many cases vulnerable seniors —out of at least $12 million in a massive Ponzi scheme," Madeline Singas, the district attorney, said in a statement. "I’m grateful to our prosecutors and our partners for holding them accountable and for their diligent work seeking restitution for the victims."

Laura Albergo said she thought she was investing her retirement savings with Eckstein, whom she'd known for 30 years and trusted.

"I am appalled and outraged that he used my hard-earned money to fund his lifestyle," she said. "While this is still a huge loss, I am very grateful for the efforts by the District Attorney's office to be able to get some restitution for my family and me."

Starting in January 2015, an elderly person agreed to invest around $385,000 into Conmac Funding, a Hicksville-based company owned by Brody and Eckstein. The person was promised the investment was safe, had no risk and the principal would be returned after a two-year waiting period with additional 4 percent interest, like a certificate of deposit.

After waiting two years, the senior asked for their money to be returned, and the person received just under $27,000 — a fraction of the original investment. The person never heard from the company again, despite repeatedly asking for the remaining investment amount and interest.

Authorities launched an investigation later that year after the senior reported the incident to the federal Securities and Exchange Commission, which referred the case to the district attorney.

Investigators found dozens of other victims, some of whom thought they were investing in something similar to a certificate of deposit with a guaranteed interest rate. Others were told the money would be used to finance premium insurance loans.

Brody and Eckstein gave clients a username and password they could use at ConmacFunding.com to see their account statements and growing account balances, misleading victims into thinking their principal investment was with Conmac Funding and earning interest.