CEO of Venture Capital Firm Pleads Guilty to Fraud Charge
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that JOSEPH McANDREW, 74, of Pawcatuck, pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from his misuse of client funds.
According to court documents and statements made in court, McANDREW was the Chief Executive Officer and Managing Partner of Wall Street Venture Capital Ltd. (“WSVC”), which offered lending and brokerage services to prospective clients who were seeking to raise money for business ventures. McANDREW required each client who retained WSVC’s services to pay upfront fees of approximately $30,000, which he falsely represented would be used solely for expenses incurred in raising money on the clients’ behalf. In truth, McANDREW used the upfront fees he received from WSVC’s clients for personal expenditures, including to purchase stocks and pay personal credit card charges.
In total, McANDREW stole $317,628 from clients of WSVC who believed their money would be used to secure financing on their behalf. None of these clients ever received financing through WSVC.
Wire fraud carries a maximum term of imprisonment of 20 years. A sentencing date has not been scheduled.
McANDREW is released on a $25,000 bond.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Avi M. Perry and Christopher W. Schmeisser.