A financial advisor from Twin Long Island has been accused of defrauding clients of $5 million, with their trial beginning on Monday. This includes a blind woman who was tricked into taking out loans unnecessarily.
Brothers Adam and Daniel Kaplan, both 36, allegedly misled around 50 clients about their investments, returns, and financial transactions, pocketing unjustified profits.
“Adam and Daniel Kaplan stole millions from their clients,” stated U.S. Attorney Rebecca Urquiola during the proceedings at the U.S. District Court in Central Islip.
Urquiola elaborated, saying, “From 2018 to 2021, they worked as financial advisors, and you’ll learn how they scammed their clients. They funneled money straight into their personal accounts. Clients would see “Kaplan Sale” on their bank statements, which raised red flags.”
The siblings faced 16 charges in July 2023, with Adam Kaplan adding two more charges in a less severe complaint, alleging he threatened witnesses and attempted to destroy evidence between April 2023 and September the previous year.
According to prosecutors, clients were lured into signing contracts that promised a 1% commission, but instead, the brothers filed multiple charges against unsuspecting investors.
In one instance, they reportedly forged a client’s $3,000 check and altered it to reflect a payment of $23,000.
Later on, Adam Kaplan proposed investment opportunities in a flower business and a moving company, which prosecutors argue were just additional means to siphon off funds.
When clients started to catch on and authorities began to investigate, the brothers allegedly tried to intimidate witnesses.
Prosecutors mentioned that Adam Kaplan acknowledged his wrongdoing and communicated with co-conspirator Ron Ross, who is prepared to testify against him.
“Even after his fraud arrest, Adam continued to contact the victims through Ron, attempting to dissuade them from testifying,” Urquiola reported. “Ron Ross has pleaded guilty and will testify, hoping for leniency during sentencing.”
During opening arguments, Kaplan’s lawyers disputed the representation of the events, criticizing Ross’s credibility.
“Ron is a liar; when caught, he turned on others,” remarked Mark Cohen, Adam Kaplan’s attorney.
Cohen further stated, “Regarding the alleged threats, that’s just part of Ross’s narrative. His word cannot be trusted.”
Claire Blumenthal Buck, representing Daniel Kaplan, referred to the prosecution’s claims as mere “fiction.”
She added, “This is a story built on assumptions; my client isn’t the villain here, as the evidence indicates.”
