More Victims Come Forward In LI Man's Ponzi Scheme: DA

A Syosset man who was arrested in June for scamming elderly clients has received upgraded charges for his involvement in a $10 million Ponzi scheme after more victims have come forward, according to Nassau County District Attorney Madeline Singas.

The DA says 48-year-old Matthew Eckstein collaborated with 54-year-old Kevin Brody, a financial advisor from Stroudsburg, PA, to scam more than 40 people, many of whom were senior citizens.

Eckstein and Brody were each arraigned on Monday on charges of two counts of second-degree grand larceny, first-degree scheme to defraud and two counts of fourth-degree conspiracy.

“Taking a page from Bernie Madoff’s playbook, these defendants allegedly preyed on vulnerable victims and stole $10 million from 40 investors in an elaborate Ponzi scheme that included a bogus online portal showing fabricated investment growth," Singas said in a press release. “Instead of providing the promised risk-free returns, the scammers allegedly squandered the investors’ cash on failed burger joints and personal expenses."

The NCDA's investigation into Eckstein began in November 2017 after one of his elderly clients reported him to authorities. He was arrested in June.

Authorities say they were aware of at least 14 people victimized by Eckstein at the time of his arrest. More victims have since come forward and now Eckstein is accused of scamming 40 people out of a total of $10 million. Many of the victims are senior citizens who trusted Eckstein and Brody with their retirement savings.

NCDA, after more victims came forward, upgraded Eckstein's charges and arrested Brody in connection to the alleged scheme.

The victims are from Massapequa, Seaford, Smithtown, Melville, Staten Island, Brooklyn, Manhattan, Norwalk, CT, Jupiter, FL and Redlands, CA. Eckstein met his clients at a Garden City-based investment firm or were referred to him by family or friends. He started his own business, Sisk Investment Services, Inc. in 2015, which he operated from his home.

The DA says Eckstein would encourage his clients to invest into a Hicksville-based company named Conmac Funding. His clients thought they were investing in something like a certificate of deposit with a guaranteed interest rate, while others were told that the money would be used to finance premium insurance loans, the DA says.

As part of the scheme, Eckstein and Brody also provided clients with a username and password for www.conmacfunding.com to view their account statement and growing account balance, which caused the clients to believe their principal investment was with Conmac Funding and earning interest, the DA says.

However, Eckstein and Brody are accused of using the money to fund other business enterprises like hamburger restaurants, personal purchases and paying off other clients they scammed.

The DA says Eckstein also used some of the stolen funds on the down payment on his Oyster Bay Cove home, which has a swimming pool and tennis court.

“These individuals thought nothing of bilking their older clients out of their hard-earned savings, enriching themselves and living lavish lifestyles," United States Postal Inspector in Charge Philip R. Bartlett said.

The investigation is ongoing and anyone who believes that they were defrauded by Matthew Eckstein, Kevin Brody, or any investment professional, is encouraged to contact the Nassau County DA’s Financial Crimes Bureau at (516) 571-2149.

Images via NCDA: (l-r) Matthew Eckstein, Kevin Brody