AP NEWS

CEO gets 30 days for stealing clients’ money

December 13, 2016 GMT

BRIDGEPORT - The CEO of a 25-year-old New York City venture capital firm was sentenced Monday to 30 days in prison for misusing more than $300,000 of clients’ funds.

Joseph McAndrew, 75, chief executive officer and managing partner of Wall Street Venture Capital Ltd was sentenced by U.S. District Judge Victor A. Bolden to 30 days in prison followed by six months of home confinement and three years of supervised release.

The Wall Street company offered lending and brokerage services to prospective clients who were seeking to raise money for business ventures.

McAndrew required each client who retained WSVC’s services to pay upfront fees of approximately $30,000, which he falsely represented would be used solely for expenses incurred in raising money on the clients’ behalf, according to court papers. In truth, McAndrew used the upfront fees he received from WSVC’s clients for personal expenditures, including to purchase stocks and pay personal credit card charges.

In total, McAndrew stole $317,628 from clients of WSVC who believed their money would be used to secure financing on their behalf, court papers show. None of these clients ever received financing through WSVC.

On April 5, McAndrew pleaded guilty to one count of wire fraud.

Judge Bolden ordered McAndrew to pay full restitution.