Community Corner

SEC Announces Final Judgment Against Carlo Chiaese

The former Springfield resident is sentenced to 58 months in jail and must repay $2,464,518 in restitution to victims.

After two years of legal action, the Securities and Exchange Commission has released the final legal judgment against fraudulent financial advisor Carlo G. Chiaese.

Chiaese was sentenced to 58 months imprisonment and was ordered to repay his customers approximately $2.4 million. In addition, his wife, Micol Chiaese, was ordered to repay $304,860.34 that investigators determined were ill gotten gains. The judgment covers criminal charges and a civil action.

Chiaese, who maintained a Westfield investment advisement office, admitted to defrauding investors, including a union pension fund, of more than $2.4 million in 2010. While he told his clients the money was safe in conservative securities, he was actually using the money to finance lavish personal expenses, including a residence at high-end Springfield development Skyline Ridge.  

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Last March, Chiaese  Judge William J. Martini at federal Court in Newark.  Chiaese was released on a $750,000 bond. Provisions of his bail included participating in a drug treatment program and to avoid working in finance.

Chiaese, 38, operated CGC Advisors, LLC in Westfield, from 1999 to 2010. Chiaese listed his residence as Springfield when he pled guilty, but has since moved to Livingston. 

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The U.S. attorney's office said that a pension fund for 850 New York City public sector union employees invested $1.71 million with Chiaese.


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