ROCKLAND COUNTY, N.Y. -- A Rockland man accused of misappropriating thousands of dollars from a $1.2 million investment fund is facing a federal charge of wire fraud, according to court documents.
Michael Schlisser, also known as "Mickey" Schlisser, allegedly solicited the investments from multiple people who believed he would use the money to purchase a number of companies, according to a criminal complaint filed in U.S. District Court in Manhattan earlier this month.
Instead, Schlisser used much of the money to pay off his car lease, rent, credit card bills, personal loans and his son's school tuition, according to documents, which said he also made payments to his ex-wife and his current wife's bakery.
Schlisser, 57, of 5 Grey Beech Lane in Pomona, was arrested by the FBI on Dec. 7 and held on $1 million bail, according to lohud.com.
According to court documents, Schlisser first solicited about $900,000 between July and November 2012, depositing the money in a corporate account owned by a company named PBF Trading LLC.
Claiming that the investment would return between 10-12 percent monthly, Schlisser allegedly made interest payments to the investors that totaled about $165,000, according to court documents, which said that the early interest payment resulted in PBF Trading receiving an additional $303,000 from the investors around late 2012.
According to the criminal complaint, Schlisser claimed to have invested $500,000 of the $1.2 million, but, in reality, had invested just 10 percent of the fund.
By June 2013, he stopped making interest payments to several of the investors, according to court documents, which said that no investor received any payments after September of that year.
According to lohud.com, a federal jury convicted Schlisser of securities fraud and 10 counts of wire fraud in 2004. Lohud reported that he was sentenced to 60 months in prison and ordered to pay more than $516,000 in restitution. Click here to read the report from lohud.com .