CEO of Venture Capital Firm Who Misused Client Funds is Sentenced
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH McANDREW, 75, of Pawcatuck, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 30 days of imprisonment, followed by six months of home confinement and three years of supervised release, for misusing 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.
Judge Bolden ordered McANDREW to pay full restitution.
On April 5, 2016, McANDREW pleaded guilty to one count of wire fraud.
Judge Bolden sentenced McANDREW below the recommended sentencing guidelines range of 27 to 33 months of imprisonment due in significant part to McANDREW’s health condition.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Avi M. Perry.