Jay Clayton, U.S. Attorney for the Southern District of New York | Department of Justice
United States Attorney for the Southern District of New York, Jay Clayton, along with Acting Inspector in Charge of the New York Division of the United States Postal Inspection Service (USPIS), Edward Gallashaw, announced charges against Joseph D’Ambrosio. D’Ambrosio is accused of defrauding clients through a private investment fund he managed for friends and family. He pleaded guilty to these charges 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. This Office will bring those who violate that trust to justice and recognizes Mr. D’Ambrosio’s self-reporting and acceptance of responsibility.”
“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. “What makes D’Ambrosio’s alleged conduct especially appalling is that his victims were personal friends and family. The Postal Inspection Service will continue investigating fraud cases such as these and will hold individuals accountable who use their professional positions as a mechanism to steal from trusting investors.”
The allegations state that from 2010 to December 2024, D'Ambrosio operated Hereford Holdings as a private investment vehicle for himself, his family, and friends. He falsely claimed that funds were invested in a private fund managed by an advisor where he served as chief investment officer but instead misappropriated funds for personal use.
D'Ambrosio issued false performance letters and fraudulent tax forms to deceive investors about their gains while using new investor funds to pay withdrawal requests in a Ponzi-like manner until confessing in December 2024.
D'Ambrosio fraudulently obtained over $5 million during this scheme.
D'Ambrosio, aged 66 from Bronxville, New York, faces one count of investment adviser fraud with a maximum sentence of five years imprisonment.
The sentencing decision lies with the judge despite Congress prescribing the maximum potential sentence provided here for informational purposes only.
Mr. Clayton praised USPIS's work and thanked the Securities and Exchange Commission for filing separate civil charges against D'Ambrosio.
Assistant U.S. Attorney Matthew R. Shahabian is leading this prosecution under the Office’s Securities and Commodities Fraud Task Force.
