United States Attorney for the Southern District of New York, Jay Clayton, and Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (USPIS), Edward Gallashaw, announced today that Joseph D’Ambrosio has been charged with fraud. D’Ambrosio pleaded guilty to defrauding clients who believed they were investing in securities through a private investment fund he managed for friends and family. The case was presented before U.S. District Judge P. Kevin Castel.
“Joseph D’Ambrosio stole more than $5 million from his friends and family and hid this fraud until the money ran out,” said U.S. Attorney Jay Clayton. “Fraudsters often prey on those close to them – friends, family, members of religious and social groups – using their trust to exploit them. This Office will bring those who violate that trust to justice and recognizes Mr. D’Ambrosio’s self-reporting and acceptance of responsibility.”
“For years D’Ambrosio, using deceptive tactics, allegedly stole from people who trusted him all in the name of greed,” said USPIS Acting Inspector in Charge Edward Gallashaw. “What makes D’Ambrosio’s alleged conduct especially appalling is that his victims were personal friends and family. The Postal Inspection Service will continue investigating fraud cases such as these and will hold individuals accountable who use their professional positions as a mechanism to steal from trusting investors.”
The allegations state that from around 2010 to December 2024, D’Ambrosio operated Hereford Holdings, a private investment vehicle for himself, his family, and his friends. He misled investors into believing their funds were invested in a private fund he managed as chief investment officer while misappropriating these funds for personal use.
D’Ambrosio issued false performance letters and fraudulent K-1 tax forms indicating profits when there were none. When investors requested withdrawals, he used new investor funds to pay them in a Ponzi-like scheme until confessing in December 2024 due to inability to meet withdrawal demands.
D’Ambrosio obtained over $5 million through this fraudulent scheme.
D’Ambrosio, 66, residing in Bronxville, New York, faces one count of investment adviser fraud carrying a maximum sentence of five years in prison. The final sentencing will be determined by the judge.
Mr. Clayton praised the work of the USPIS and thanked the Securities and Exchange Commission for filing civil charges against D’Ambrosio separately.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force with Assistant U.S. Attorney Matthew R. Shahabian leading the prosecution.
