U.S. Attorney’s Office
District of Connecticut
(203) 821-3700
October 6, 2015

East Haven Resident Sentenced to More Than Five Years in Federal Prison for Operating Investment Scheme

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN D’AURIA, 41, of East Haven, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 63 months of imprisonment, followed by three years of supervised release, for operating an investment scheme that defrauded investors out of nearly $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, seven investors lost a total of $2,375,943.49. Today, Judge Shea ordered D’AURIA to pay full restitution.

On July 13, 2015, D’AURIA waived his right to indictment and pleaded guilty to one count of wire fraud.

D’AURIA, who is released on a $100,000 bond, was ordered to report to prison on December 7, 2015.

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

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