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The brothers, Adam and Daniel Kaplan, both age 34 and hailing from Great Neck, were indicted on charges of wire fraud, money laundering, and more, the US District Attorney’s Eastern District of New York announced on Tuesday, July 25.
Adam and Daniel, between May 2018 and November 2022, took on hundreds of clients as investment advisors from New York all the way to Arizona, according to the indictment and public records.
During that time, the brothers used their position as a trusted authority to swindle millions of dollars from their clients, some of whom were elderly or disabled.
In one of these schemes, the DA’s Office claims, Adam and Daniel would agree orally to charge a certain advisory fee near 1 percent but would have the clients sign paperwork with the fee section left blank.
Once signed, the twins would raise the percentage often to 2 percent or more. This resulted in the men allegedly overbilling the victims by more than $540,000 – with the majority of those funds going to the Kaplans.
Adam and Daniel also allegedly used their client’s credit card and bank information to forge checks in the Kaplans' names or fraudulently charge the clients’ cards, all under the guise that the money would be invested.
In total, the brothers stole at least $4 million that way.
The funds were used to furnish the Kaplans’ personal expenses and the purchasing of luxury goods.
If victims would report fraudulent charges to their banks, Adam and Daniel purportedly provided the bank fake contracts stating that the brothers did, in fact, have the authority to charge the client for the specific charge in the complaint.
Because of this, the bank would deny the victim’s fraud claim, allowing the twins to continue their scheme.
Furthermore, the DA claimed, the brothers would use money from other clients to pay those who complained about their missing money.
In all, Adam and Daniel face the following charges:
- Conspiracy to commit wire fraud;
- Wire fraud;
- Investment advisor fraud; and
- Money laundering.
If they are convicted, they face up to 20 years behind bars.
Additionally, the US District Attorney’s Office offered that former clients who would like to file a complaint can do so at www.iC3.gov, with “Adam Kaplan” or “Daniel Kaplan” referenced in the complaint.
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