District Attorney Cyrus R. Vance, Jr., today announced the sentencing of STEVEN MANDALA to 2 to 6 years in prison. MANDALA pleaded guilty to Grand Larceny in the Second Degree and Identity Theft in the First Degree on May 19, 2010, in New York State Supreme Court. In addition to having already forfeited the Ferrari purchased with the money he stole, MANDALA must repay an additional $360,000 in restitution.
According to court documents, MANDALA was employed as a stockbroker with Maxim Group, earning approximately $100,000 a year, when he applied for a job with Merrill Lynch. MANDALA falsely told Merrill Lynch that he was a partner with Maxim Group, that his clients entrusted him with $300 million of assets to manage, and that his work produced $1.5 million in revenue, for which he received compensation totaling $765,000. MANDALA produced false pay stubs, tax returns, and W-2 forms in support of his fraudulent claim.
Upon his hire, the parties executed a promissory note, under which Merrill Lynch advanced MANDALA $780,000, to be repaid over an 8-year period. MANDALA deposited the $780,000 check from Merrill Lynch in his parent’s account. Less than one week later, MANDALA withdrew $245,580 from the account, and used the money to purchase a Ferrari in his father’s name. Over the next two months MANDALA frequently did not show up at his new job, and brought in only two or three clients with assets of approximately $20,000. MANDALA resigned from his position with Merrill Lynch by e-mail on June 29, 2009, barely two months after joining the firm and receiving the $780,000, and asked his employer to discard his personal effects.
District Attorney Vance thanked Assistant District Attorney Vimi Bhatia who handled the prosecution of the case under the supervision of Deputy Chief Gary Fishman of the Major Economic Crimes Bureau, and Paralegal Eunice Choi who assisted with the case.
Defendant information:
STEVEN MANDALA, 1/6/1981
450 West 17th Street
New York, NY
Charges:
• Grand Larceny in the Second Degree, a class C felony
• Identity Theft in the First Degree, a class D felony
According to court documents, MANDALA was employed as a stockbroker with Maxim Group, earning approximately $100,000 a year, when he applied for a job with Merrill Lynch. MANDALA falsely told Merrill Lynch that he was a partner with Maxim Group, that his clients entrusted him with $300 million of assets to manage, and that his work produced $1.5 million in revenue, for which he received compensation totaling $765,000. MANDALA produced false pay stubs, tax returns, and W-2 forms in support of his fraudulent claim.
Upon his hire, the parties executed a promissory note, under which Merrill Lynch advanced MANDALA $780,000, to be repaid over an 8-year period. MANDALA deposited the $780,000 check from Merrill Lynch in his parent’s account. Less than one week later, MANDALA withdrew $245,580 from the account, and used the money to purchase a Ferrari in his father’s name. Over the next two months MANDALA frequently did not show up at his new job, and brought in only two or three clients with assets of approximately $20,000. MANDALA resigned from his position with Merrill Lynch by e-mail on June 29, 2009, barely two months after joining the firm and receiving the $780,000, and asked his employer to discard his personal effects.
District Attorney Vance thanked Assistant District Attorney Vimi Bhatia who handled the prosecution of the case under the supervision of Deputy Chief Gary Fishman of the Major Economic Crimes Bureau, and Paralegal Eunice Choi who assisted with the case.
Defendant information:
STEVEN MANDALA, 1/6/1981
450 West 17th Street
New York, NY
Charges:
• Grand Larceny in the Second Degree, a class C felony
• Identity Theft in the First Degree, a class D felony
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