Bonita Springs man sentenced to over 7 years in prison for fraud scheme

DARIEN, Conn. —

A Bonita Springs man has been sentenced to 90 months in prison for offenses stemming from an investment fraud scheme.

According to the U.S. Attorney's Office, John Masanotti Jr., 71, of Bonita Springs, was sentenced by U.S. District Judge Victor A. Bolden to 90 months in prison followed by three years of supervised release.

According to court documents, Masanotti, who used to live in Darien, Connecticut, was the owner and managing member of Middlesex Mortgage Group, LLC.

Through Middlesex and while acting as an investment adviser, Masanotti managed a pooled investment vehicle on behalf of investors. Court documents show that Masanotti told clients and potential clients that invested funds would be pooled together and invested in foreign currency and other investments.

According to court documents, between 2016 and 2023, Masanotti defrauded 14 clients of a total of more than $4 million by using their money for personal expenses and to pay back other clients. Masanotti provided clients with fraudulent monthly account statements that showed fake investment profits.

Additionally, in 2016, 2017 and 2019-2022, Masanotti failed to report more than $3 million in income to the IRS, resulting in a tax loss of nearly $1 million. Court documents show that Masanotti also made false statements to the FBI during the investigation.

In addition to his sentence, Masanotti will pay $4,361,632 in restitution to his victims, and will cooperate with the IRS to pay back all taxes, penalties and interest.

Masanotti was arrested on May 9, 2024, and on Oct. 1, 2025, he pleaded guilty to one count of wire fraud and one count of tax evasion.

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