Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN D’AURIA, 41, of East Haven, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Michael P. Shea in Hartford to one count of wire fraud stemming from his operation of an investment scheme that defrauded investors of approximately $2.4 million.

According to court documents and statements made in court, D’AURIA conducted an investment business using the name Fifth Street Capital. D’AURIA was a licensed and registered investment adviser but lost his license in approximately 2011. From approximately 2010 to 2014, D’AURIA engaged in a scheme to defraud investors who had provided him with investment funds by failing to invest the funds as represented and by using the majority of the funds for his personal use.

As part of his scheme, D’AURIA made false statements and misrepresentations to his investors regarding the purported returns generated by their investments. He also represented to investors that their funds were fully invested in separate accounts. In truth, D’AURIA did not fully invest the investors’ funds but rather commingled the funds in his own personal bank accounts and his own trading account.

As a result of D’AURIA’s scheme to defraud, approximately eight investors lost a total of approximately $2.4 million of the funds they provided to D’AURIA.

Judge Shea scheduled sentencing for October 6, 2015, at which time D’AURIA faces a maximum term of imprisonment of 20 years, a maximum fine of more than $4.8 million and an order of restitution.

D’AURIA is released on a $100,000 bond.

This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Senior Litigation Counsel Richard J. Schechter.