Earlier today, Jeffrey Slothower was sentenced to 72 months in prison for wire fraud, investment adviser fraud, and money laundering. The sentencing took place in federal court in Central Islip. United States District Judge Gary R. Brown also ordered Slothower to pay $1,160,936 in restitution and forfeiture.
The announcement of the sentence was made by Joseph Nocella, Jr., United States Attorney for the Eastern District of New York, and James C. Barnacle, Jr., Assistant Director in Charge at the Federal Bureau of Investigation’s New York Field Office.
“Jeffrey Slothower used his position as an investment advisor to steal over a million dollars from an unsuspecting couple,” stated United States Attorney Nocella. “Today’s sentence sends a message to all those that would use their positions as financial professionals to line their own pockets – our Office will prosecute you to the full extent of the law.”
“Jeffrey Slothower crafted fabrications of profitable returns to conceal his true intention of reaching into his clients’ wallets and personally pocketing their investments,” stated FBI Assistant Director in Charge Barnacle. “Slothower stole more than one million dollars from his investors to fund extravagant purchases and repay his own credit card bills. The FBI will continue to unravel any web of lies used to unlawfully solicit investments at the cost of trusting clients.”
According to evidence presented at trial, Slothower misappropriated more than $1 million from clients while operating Battery Private, a New York-based investment advisory firm. He convinced two California clients—whose funds he previously managed elsewhere—to invest large sums with promises of high returns without market risk. Instead of investing these funds as promised in so-called HOA Bonds with an eight percent return, he used them for personal expenses including purchasing a luxury vehicle and paying country club dues.
Additional client funds were solicited under similar false pretenses and then spent on personal items such as designer goods and jewelry or used for credit card payments. To maintain the scheme, Slothower made payments back to victims falsely described as investment distributions.
The fraudulent activities extended beyond investment fraud; during this period, Slothower also engaged in mortgage fraud by misrepresenting sources of income when refinancing his residence’s mortgage loan.
The case was prosecuted by Assistant U.S. Attorneys Adam Toporovsky and Benjamin Weintraub from the Criminal Section of the Long Island Division and Business and Securities Fraud Section with assistance from Paralegal Specialist Janelle Robinson.
The U.S. Attorney for the Eastern District of New York serves as the federal prosecutor's office covering Brooklyn, Queens, Staten Island, Nassau County, and Suffolk County with offices located in Brooklyn and Central Islip official website. The office handles prosecutions of federal crimes such as this case and represents the United States in civil matters throughout its jurisdiction official website. It also provides victim assistance services official website.
JEFFREY SLOTHOWER
Age: 47
Southampton, New York
E.D.N.Y. Docket No. 21-CR-602 (GRB)
