United States Attorney for the Southern District of New York, Jay Clayton, alongside Edward Gallashaw, Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (USPIS), announced charges against Joseph D’Ambrosio. The investment advisor was charged with defrauding clients through a private investment fund he managed for friends and family. D’Ambrosio pleaded guilty 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,” stated 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.”
“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.
D’Ambrosio operated Hereford Holdings from 2010 to December 2024 as a private investment vehicle for himself, his family, and friends. He falsely informed investors that their funds were invested in a private fund managed by an investment advisor where he served as chief investment officer but misappropriated funds for personal use.
To maintain the scheme, D’Ambrosio issued false performance letters and fraudulent tax forms to investors. When withdrawal requests could not be honored in December 2024, he confessed to his crimes.
D’Ambrosio fraudulently obtained over $5 million during this scheme and faces one count of investment adviser fraud with a maximum sentence of five years in prison.
Mr. Clayton praised USPIS’s work and thanked the Securities and Exchange Commission for filing separate civil charges against D’Ambrosio. The prosecution is handled by Assistant U.S. Attorney Matthew R. Shahabian under the Office’s Securities and Commodities Fraud Task Force.
