Syosset Financial Advisor Scammed Elderly Clients Out Of $5M: DA

A financial advisor from Syosset is accused of stealing more than $5 million from at least 14 clients, including ones who are elderly and deceased, Nassau County District Attorney Madeline Singas announced Tuesday.

Matthew Eckstein, 48, was arraigned Thursday, June 7 on three counts of second-degree grand larceny, third-degree grand larceny and two counts of first-degree scheme to defraud.

The clients he allegedly scammed were mostly senior citizens who trusted Eckstein with their retirement savings. The victims are from Massapequa, Seaford, Smithtown, Melville, Staten Island, Brooklyn, Manhattan, Norwalk, CT, Jupiter, FL and Redlands, CA.

“This unscrupulous financial advisor allegedly betrayed his clients’ trust when he stole their money in a multi-million dollar Ponzi scheme and even pilfered hundreds of thousands from the estates of deceased clients,” Singas said in a press release. “The charges are even more egregious because many of the alleged victims were elderly and seeking safe investments for their retirement funds."

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

The NCDA's investigation into Eckstein began in November 2017.

According to the DA, Eckstein urged one of his elderly clients to invest $385,000 into a company named Conmac Funding in the beginning of 2015. Eckstein, who worked as a personal accountant and financial advisor, told his client the investment was safe, had no risk and the principal would be returned after a two-year waiting period with an additional four-percent interest similar to a certificate of deposit, the DA says.

The client requested the return of her money in January 2017, but received a payment of only $26,699. The DA says Eckstein claimed that Conmac was an insurance company and her money would be paid back in installments. Eckstein stopped communicating with his client when she continued to ask for the return of the remaining principal and interest, the DA says.

A search warrant was executed at Eckstein's home in April 2018. Authorities say they found thousands of pages of documents, revealing he was using his client's money to fund other business enterprises, cover personal purchases and pay other victims of the scheme.

An investigation also revealed Eckstein committed estate fraud, stealing hundreds of thousands of dollars, while acting as the executor of the estates of two deceased clients, the DA said. In these instances, the DA says Eckstein:

• Recuperated some unclaimed funds from the NYS Comptroller’s Office and used the money to pay off debts instead of forwarding it to the decedent’s heirs.
• Deposited over $100,000 in funds meant for charity into an account where he had signatory powers, and used the money to pay debts to his clients.

“Mr. Eckstein allegedly used his business acumen to devise a scheme to defraud his clients of their hard-earned investments, and for some their retirement savings," United States Postal Inspector in Charge Peter R. Rendina said. "In his pursuit to enrich his own lifestyle, he underestimated the resolve of Postal Inspectors and their law enforcement partners to bring those to justice whose greed overshadows honest business practices.”

Bail for Eckstein was set at $125,000 bond or $75,000 case. He is due back in court on July 2. He faces a maximum sentence of five to 15 years in prison if convicted.

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

The investigation is being conducted by NCDA, US Postal Inspection Service, FBI and the NYS Comptroller’s Office.

Image via NCDA