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CEO Sentenced to Nearly 6 Years for $10.4 Million Fraud
In a significant crackdown on securities fraud, a federal court in Newark delivers justice to defrauded investors.
NEWARK, N.J. – A federal court in Newark has imposed a 71-month prison sentence on Denver, Colorado CEO, Samuel J. Mancini, age 57, for orchestrating a securities fraud scheme that illicitly garnered $10.4 million from investors. U.S. Attorney Philip R. Sellinger announced the sentencing, highlighting the end of Mancini's fraudulent operations that spanned from February 2020 through July 2021.
Mancini, the mind behind Outdoor Capital Partners LLC (OCP) and its venture, OCP Italia Fund LLC, misled investors with promises of significant returns from the acquisition of Italian cycling companies.
The scheme promised investors around 70 percent of the operating profits from these acquisitions, which never materialized. In his deceit, Mancini claimed to contribute $5 million of his own funds towards raising $20 million for these ventures.
The investigation revealed Mancini's repeated misrepresentations about his financial contributions, the fund's operations, and even his educational background, falsely claiming to be a graduate of a prestigious military academy.
Instead of fulfilling the promised acquisitions, Mancini diverted investor funds, defaulted on contracts, and in some cases, resorted to paying off redeeming investors with the incoming funds from new victims.
"This defendant concocted an elaborate scheme to swindle unsuspecting victims out of their hard-earned money. His lies and theft were successful to the tune of $10.4 million – right up to the moment law enforcement caught up with him. He will now spend the next several years of his life in prison, a just punishment for his crimes," U.S. Attorney Philip R. Sellinger stated, underscoring the seriousness of Mancini's offenses.
FBI – Newark Special Agent in Charge James E. Dennehy echoed the sentiment, warning potential fraudsters of the inevitable outcome of such schemes and encouraging victims to seek justice.
In addition to his prison term, Mancini faces three years of supervised release, marking a significant step towards justice for the victims. This case, investigated by the FBI with special recognition to the Denver Field Office, also led to a civil complaint by the U.S. Securities and Exchange Commission against Mancini, further solidifying the legal repercussions of his actions.
The prosecution, led by Assistant U.S. Attorneys Lauren E. Repole and James H. Graham, underscores the diligent efforts of the Economic Crimes Unit and the Organized Crime/Gangs Unit in bringing Mancini to justice. This sentencing sends a strong message against securities fraud, protecting investors and maintaining the integrity of the financial markets.
