New attorney general accuses ex-Citibank adviser of scamming seniors

This Queens investment adviser has 99 problems, but Eric Schneiderman isn’t one.

Dean Mustaphalli was slapped by newly minted New York Attorney General Barbara Underwood with a 99-count indictment Wednesday for allegedly plundering the accounts of the elderly and losing all their money in “reckless” gambles with his personal hedge fund.

Underwood announced the criminal charges at a press conference in Lower Manhattan, her first such event since taking over from Schneiderman, who abdicated his post earlier this month amid domestic violence allegations. It was under Schneiderman that the office initiated a civil action against Mustaphalli last summer.

As told by Underwood, Mustaphalli started out as an investment advisor at a Citibank branch in Jamaica, Queens, where he developed personal relationships with a number of clients. Facing internal investigations at the financial giant, he left and began his own firm, taking many of his accounts with him. The civil case maintains that Mustaphalli “looted and squandered” $6.9 million from an array of middle-class senior citizens, while the criminal indictment accuses him of pilfering another $4 million from other investors.

Source: Crain’s

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