Bergen County Accountant Admits To Ponzi Scheme That Took In $10M

Authorities said the Glen Ridge tax preparer used false account statements and later a check-kiting scheme to obtain nearly $500,000 from banks; sentencing is set for June 23, 2026.

A Bergen County-based accountant and tax preparer admitted in federal court this week that he ran a long-running Ponzi scheme that drew in about $10 million from clients and other investors and caused losses of about $3 million, and that he later used a check-kiting scheme to fraudulently obtain nearly $500,000 from banks, federal prosecutors said.

Evangelos Drosos, 51, of Glen Ridge, pleaded guilty Feb. 17, 2026, before U.S. District Judge Michael A. Shipp in Trenton federal court to an information charging three counts of wire fraud, one count of bank fraud and one count of failure to file an individual income tax return, according to documents filed in the case and statements made in court. Sentencing is scheduled for June 23, 2026.

Prosecutors said Drosos used businesses he controlled to solicit money from clients and other investors by claiming he would manage their funds through various investment strategies, but instead commingled investor money with other accounts and used it to repay earlier investors and cover personal expenses.

“For years, Evangelos Drosos abused the confidence his clients placed in him, operating a Ponzi scheme that funneled millions of their hard-earned dollars into his own lifestyle instead of legitimate investments. When investor funds ran dry, he escalated his conduct with additional fraud to keep the scheme going. This guilty plea holds him accountable and sends a clear message: those who run Ponzi schemes and exploit the faith of investors for personal gain will be identified, prosecuted, and brought to justice.” - Senior Counsel Philip Lamparello

Ponzi scheme allegations

According to court filings and statements made in court, prosecutors said that from 2013 through June 2025, Drosos falsely represented to clients and other investors that he would invest and manage their money. Prosecutors said he did not invest the funds as promised and instead used investor money to repay other investors or pay personal expenses, including vacations, a luxury vehicle and real estate.

To conceal the scheme, prosecutors said Drosos provided victim investors with false account statements. Authorities said he caused victims to send him approximately $10 million, resulting in aggregate losses of approximately $3 million.

Bank fraud tied to check-kiting

Prosecutors said the scheme began to unravel in June 2024, when Drosos no longer had sufficient new investor deposits to repay other investors. Prosecutors said he then engaged in a check-kiting scheme by writing checks exceeding available funds, depositing those checks and quickly withdrawing money from other accounts before the checks bounced.

Through that conduct, prosecutors said, Drosos fraudulently obtained nearly $500,000 from the victim banks.

Drosos also admitted he failed to file an individual income tax return for tax year 2023, prosecutors said.

Penalties

Each wire fraud count carries a maximum penalty of 20 years in prison and a fine of $250,000, or twice the gross loss to the victim or gain to the defendant, whichever is greater, prosecutors said. The bank fraud count carries a maximum penalty of 30 years in prison and a fine of $1 million, or twice the gross loss to the victim or gain to the defendant, whichever is greater. The failure-to-file count carries a maximum penalty of one year in prison and a fine of up to $100,000, prosecutors said.

Lamparello credited the FBI’s Newark Field Office, IRS Criminal Investigation, the Treasury Inspector General for Tax Administration’s Mid-Atlantic Field Division and the U.S. Postal Inspection Service’s Philadelphia Division with the investigation. He also thanked the Bergen County Prosecutor’s Office and the Sussex County Prosecutor’s Office for assistance.

The case is being prosecuted by Assistant U.S. Attorneys Robert L. Toll and George L. Brandley, unit chief of the U.S. Attorney’s Office Health Care Fraud and Opioids Enforcement Unit in Newark, prosecutors said.