Francis A. Zarro Jr. (born 1951) is an American former entrepreneur and disbarred lawyer known for his involvement in a series of fraudulent schemes targeting real estate investors. Zarro gained attention for his extravagant lifestyle and promises of lucrative returns on investments. However, it was revealed that he had engaged in fraud, deception, and other illegal activities, resulting in the loss of more than $25 million from unsuspecting victims. After his release from prison, Zarro became involved in criminal justice reform efforts and has worked as an activist in initiatives such as the Skidmore College Restorative Justice Project. Zarro's son Andrew Zarro is a member of Portland, Maine City Council and ran for mayor there in 2023.[1]
Career and fraudulent activities
editFrancis A. Zarro Jr. grew up in the Bronx. Over a span of 13 years, beginning in 1989, Zarro orchestrated a series of fraudulent real estate schemes resulting in the loss of more than $25 million from unsuspecting victims. He operated through two corporations, American Past Time Holdings and New Deal Projects, often involving partners in his activities. Victims were lured into making significant upfront payments, sometimes amounting to millions of dollars, only to later find out that the promised real estate deals had fallen through, resulting in the loss of their investments.[2]
Zarro utilized the funds obtained to support his lavish lifestyle and create an appearance of legitimacy. He rented office spaces, hired high-priced law firms, and used transportation services such as limousines to project an image of financial capability. However, it was revealed that the rent on these office spaces often went unpaid, and the offices were abandoned after meetings with prospective investors.[3]
During his fraudulent activities, Zarro targeted various victims, including a hometown friend of Governor George Pataki, the Hudson Valley Philharmonic,[4] and potential investors in a resort casino in Sanford, Maine.[5][6][7] Zarro declared bankruptcy twice, with a personal bankruptcy case amounting to $20 million in 1994 and a corporate bankruptcy case totaling $10 million in 1997. He was also disbarred in 2000 for failing to repay unused retainer fees totaling hundreds of thousands of dollars.[2]
Legal actions and consequences
editIn February 2003, a 39-count indictment was handed down by a Dutchess County grand jury, charging Zarro with multiple counts of fraud and related offenses. The New York Attorney General, Eliot Spitzer, accused Zarro of defrauding 28 victims, including businesses and individuals, by misrepresenting financing, trade records, and critical details about the investment deals.[8]
Zarro pleaded not guilty to the charges and was released on a $500,000 bond. The charges carried penalties of 10 to 30 years in prison. After a three-month non-jury trial before Putnam County Judge James Rooney, Zarro was convicted of 13 counts of grand larceny, scheming to defraud, and possession of stolen property. He was sentenced to seven to 21 years in state prison in November 2004.[9][10][11]
In October 2013, Zarro was granted parole.[12]
After his release from prison, Frank Zarro became involved in the Skidmore College Restorative Justice Project in New York. Working alongside the college and other stakeholders, Zarro contributed to the development and implementation of initiatives aimed at promoting restorative justice principles within the criminal justice system.[13] Zarro is a consultant at First Fairfield Associates, a Saratoga Springs-based firm specializing in venture capital and development consulting.[14] His son, Andrew Zarro, a member of Portland, Maine City Council who unsuccessfully ran for mayor in 2023, also worked at First Fairfield Associates. In August 2012 Andrew coordinated a conference on restorative justice where he discussed having an incarcerated parent.[15]
References
edit- ^ "Andrew Zarro For Mayor". Andrew Zarro for Mayor. Retrieved 11 October 2023.
- ^ a b McFadden, Robert D. (28 February 2003). "Entrepreneur Is Accused Of Defrauding The Wealthy". The New York Times. Archived from the original on 26 December 2017. Retrieved 1 September 2023.
- ^ "Massive Real Estate Scheme Results In Indictment". ag.ny.gov. 27 February 2003. Retrieved 3 September 2023.
- ^ Whitaker, Barbara (7 May 2004). "Orchestra's Debacle Reprised at Businessman's Fraud Trial". The New York Times. Archived from the original on February 7, 2018. Retrieved 1 September 2023.
- ^ Swinconeck, John (Aug 7, 2003). "Possible casino fraud serves as a warning to investors". York County Coast Star. Retrieved 3 September 2023.
- ^ Swinconeck, John (July 31, 2003). "Think About It slams door on indicted investor". York County Coast Star. Retrieved 1 September 2023.
- ^ Berger, Joseph (12 June 1999). "Big Dream Batters A Small Orchestra; A Tanglewood in Dutchess Leads to Lawsuits and Red Ink". The New York Times. Archived from the original on September 12, 2017. Retrieved 1 September 2023.
- ^ "Watch Out For Real Estate Scams". Forbes. Mar 14, 2003. Retrieved 1 September 2023.
- ^ Fisher-Hertz, Larry (November 19, 2004). "Zarro gets up to 21 years". Poughkeepsie Journal.
- ^ Doxsey, Patricia (19 November 2004). "Zarro gets 7-21 years in prison for bilking investors". Daily Freeman. Retrieved 1 September 2023.
- ^ "Attorney Linked To Financial Scams Is Sentenced To Prison". ag.ny.gov. 19 November 2004. Retrieved 3 September 2023.
- ^ Caher, John. "Parole Board Approves Release of Ex-Attorney". New York Law Journal. Retrieved 1 September 2023.
- ^ Lawson, Kimberly (21 August 2017). "This New Jobs Platform Matches Ex-Offenders With Employers". Vice. Retrieved 1 September 2023.
- ^ Nearing, Brian (March 9, 2017). "State pollution tax breaks possible for proposed Saratoga Springs events center". Times Union. Retrieved 5 September 2023.
- ^ "In Our Name". Archived from the original on Oct 6, 2012.