New York Ponzi Schemers Spent Investor $$$ On Pets, Credit Cards

WHITE PLAINS, NY — A New York investment manager will be spending time behind bars and another will be on probation after being sentenced for their involvement in a nearly decade-long Ponzi scheme.

Attorney General Letitia James announced Thursday that James Doyle, 74, of White Plains, was sentenced to five years' probation, and Carl Carro, 61, of Walton, Delaware County, was sentenced from four to eight years in prison.

As part of their sentences, the pair agreed to pay a total of more than $1 million in judgments to the victims of their scheme.

James said Doyle pleaded guilty in July 2021 to second-degree money laundering and first-degree scheme to defraud, felonies. Carro pleaded guilty in October to second-degree money laundering, securities fraud under the Martin Act, first-degree scheme to defraud and repeated failure to file personal income tax returns, all felonies.

She said New Yorkers deserve the peace of mind of knowing that when they make an investment with their hard-earned money it won't be stolen by shameless fraudsters.

"For nearly a decade, Carl Carro and James Doyle pocketed more than $1 million from investors who trusted them with their funds," James said. "My office will always work to protect the interests of New Yorkers and ensure anyone seeking to take advantage or violate state laws is held accountable."

According to prosecutors, Carro and Doyle solicited investments in their companies, Endeavor Management Solutions and Endeavor Consultancy, from more than 50 people in New York and other states between January 2012 and December 2020.

The men misrepresented to investors that Endeavor was a headhunting firm hired by prestigious clients to find candidates for openings on their boards of directors.

They lured investors with false promises of interviews for board positions and then offered purported no-risk investment opportunities in their firm.

Carro and Doyle promised their victims that investments would be held in an untouched cash reserve fund that allegedly held more than $1 million and guaranteed a 10- to 20-percent return on investment after 30 days.

An audit by James's office found that investor funds were used for personal expenses and to pay back previously defrauded investors.

According to the audit, the men spent nearly $500,000 on cash withdrawals, more than $200,000 to pay personal credit card bills, more than $57,000 on pet expenses and more than $350,000 to pay previously defrauded investors.

James said Carro and Doyle stole between $15,000 and $30,000 from each of the more than 50 victims, with total losses exceeding $1 million.

The overwhelming majority of the stolen funds were diverted for Carro's personal benefit, including more than $170,000 in restitution to pay the victims of Carro's prior criminal cases.

The audit also revealed that Carro failed to report more than $2 million in taxable income, which included the amount he stole from victims, and failed to remit more than $100,000 in taxes owed to New York since at least 2012.