Former Darien man charged in $4M investment fraud scheme

A former Darien resident suspected of running an investment fraud scheme for about 7 years has been charged with federal offenses, officials announced on Thursday.

John Masanotti, 69, who now lives in Florida, was arrested in that state Thursday on eight counts of wire fraud, 11 counts of making illegal monetary transactions, and single counts of making false statements and falsification of records in a federal investigation. He was released on $100,000 bond after appearing in court in Florida, and he is scheduled to arraigned May 15 in Hartford.

According to federal officials, when Masanotti lived in Darien, he was the owner and managing member of the Middlesex Mortgage Group LLC. Through that company, Masanotti acted as an investment advisor and claimed to clients and potential clients that invested funds were or were going to be pooled together and invested, federal officials said.

However, officials allege that between 2016 and 2023, Masanotti used money invested by at least 10 clients for personal expenses or to pay returns to other clients, defrauding them of more than $4 million in the process. Officials said that Masanotti provided the clients with fraudulent monthly account statements that showed fake investment profits.

Masanotti also is charged with making false statements to the FBI, and filing false records in an attempt to obstruct the investigation, officials said.