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The 60-year-old is accused of subjecting his daughter's classmates at Sarah Lawrence College “to sexual and psychological manipulation and physical abuse,” according to an indictment unsealed by the U.S. Attorney’s Office of the Southern District of New York.
Lawrence Ray, also known as Lawrence Grecco, was charged with extortion, sex trafficking, forced labor, conspiracy and trafficking, two counts of use of interstate commerce to promote unlawful activity and money laundering, authorities said Tuesday. He was arrested at his home in Piscataway. One of the victims was with Ray when he was arrested, authorities said.
Ray reportedly moved into on-campus housing at Sarah Lawrence College in Yonkers about 10 years ago. His daughter was a sophomore at the time. Ray held so-called therapy sessions with his daughter’s roommates, presenting himself as a father figure. At least seven young adults were victims, authorities said.
Ray hosted lengthy interrogation sessions, reportedly subjecting the victims to “sleep deprivation, psychological and sexual humiliation, verbal abuse, threats of physical violence, physical violence and threats of criminal legal action," according to the indictment.
Ray is accused of making one student work as a prostitute; Ray took more than $500,000 from the woman through “force, threats of force, fraud and coercion,” according to the indictment.
Federal authorities allege Ray laundered around $1 million in proceeds from criminal activity through numerous bank accounts, including some of the victims.
A spokesperson for Sarah Lawrence College called the charges “serious, wide-ranging, disturbing, and upsetting.” But the college added its own investigation "did not substantiate those specific claims."
Ray’s alleged criminal behavior was first exposed by New York Magazine last April in an article titled, “The Stolen Kids of Sarah Lawrence."
Ray has a previous conviction for securities fraud. He faces more than 100 years in prison if found guilty, according to the federal prosecutor.
He previously worked on Wall Street and co-owned a nightclub in New Jersey.
"The conduct alleged here is outrageous," William Sweeney, assistant director-in-charge of the FBI in New York, said at a press conference today in Manhattan. "It makes you angry. If you're not angry, you don't have a soul."
"The arrangement was anything but traditional," he said.
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