Former Ithaca CPA Sentenced to Prison for Multi-Million Dollar Investment Fraud
Many Victims Were from Upstate New York
SYRACUSE, NEW YORK – Bruce Kane, 62, of Fort Lauderdale, Florida, who previously resided in Ithaca, New York, was sentenced today to serve 97 months (8 years and 8 months) in prison and ordered to pay $8.9 million of restitution and more than $10 million of forfeiture for conspiracy to commit wire fraud, announced United States Attorney Richard S. Hartunian and FBI Special Agent in Charge Andrew W. Vale.
“The sentence today reflects the significant suffering of victims who trusted Bruce Kane with their hard-earned savings. Kane lied to them so that he could steal their money and live the high life. He is now being held accountable for betraying their trust,” said United States Attorney Hartunian.
“We will continue the dedicated pursuit of those who violate the law for personal gain. This multi-million dollar investment fraud scheme demonstrates the significant impact white-collar criminals can have on hard-working individuals of our communities. Today’s sentencing is the result of the hard work and cooperation between the FBI and the U.S. Attorney’s Office to bring this individual to justice,” said FBI Special Agent in Charge Andrew W. Vale.
As part of his June 13, 2016 guilty plea, Bruce Kane acknowledged that he is a certified public accountant who was the managing partner for Global Financial Fund 8, LLP, a company that solicited and received over $10 million from investors located throughout the United States, including residents of the Northern District of New York. In pleading guilty, Kane admitted that he misappropriated approximately $1.5 million of the investors $10 million for his own personal use and enjoyment so that he and his family could live a lavish lifestyle. He further admitted that he used investor funds to buy a $59,000 boat, travel the world, make more than $280,000 in credit card payments, and rent waterfront condominiums in Florida. In an effort to avoid detection and allow him to continue to divert money for his own use, Kane helped orchestrate the payment of phony “profit” distributions to investors in 2004 and 2005, which were merely a partial return of their own money. Further, from 2004 to 2013 Kane repeatedly sent false email messages reassuring investors that their investments were secure.
Senior United States District Judge Thomas J. McAvoy also imposed a 3-year period of supervised release, which will start after Kane is released from prison.
Bruce Kane is the second defendant to be sentenced in this case. On February 19, 2016, Burton Greenberg, 75, of Plantation, Florida who previously pled guilty to these charges on November 9, 2015, in federal court in Fort Lauderdale, Florida, was sentenced to serve 97 months in prison and ordered to pay more than $10 million of restitution and more than $10 million of forfeiture.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Geoffrey Brown.