By Kevin Deutsch
A Parkland man who conned elderly investors out of millions of dollars was sentenced Thursday to 87 months in federal prison, according to the Department of Justice.
Isaac Grossman, 47, of Heron Bay, directed an elder fraud scheme in which he sold stock in his South Florida-based technology company to senior citizens across the U.S., then misappropriated their money for his own personal use, federal prosecutors said.
U.S. District Judge Raag Singhal sentenced Grossman in Fort Lauderdale federal court after Grossman had previously pleaded guilty to wire fraud, mail fraud, and money laundering charges. Grossman had faced up to 50 years in prison for his crimes.
He was also ordered to pay nearly $3 million in restitution, court records show.
Grossman will be credited with about seven months served and must surrender to the federal Bureau of Prisons no later than April 8, according to the records.
From September 2014 through April 2018, Grossman raised around $2.4 million in investor funds for his company, Dragon-Click Corp., by soliciting investments from elderly retirees across the country, prosecutors said.
Grossman’s pitch to investors: Dragon-Click was developing a revolutionary internet application, and they had a chance to get in on the ground floor. He told them the new shopping app would allow users to post a photo of any item they might want to purchase, immediately recognize all retailers who sell the item, and provide price comparisons and links to buy.
Grossman admitted he falsely told investors they would double, triple, or quadruple their money. According to DOJ, he even claimed Dragon-Click was on the verge of being sold to a large technology company like Google, Apple, or Amazon for over $1 billion.
Before raising funds for Dragon-Click, he concealed from investors that the Financial Industry Regulatory Authority had permanently barred him from acting as a broker or associating with brokerage firms.
He also hid the fact he had been permanently banned from commodities trading by the U.S. Commodity Futures Trading Commission.
With investors’ money in hand, Grossman spent $1.3 million of his fraudulent gains on gambling, diamond jewelry, luxury cars, home mortgage payments, tuition payments for his children’s private school education, and other personal expenditures, including a McLaren MP4-12C, a Chevrolet Corvette and a 4.81-carat diamond ring, prosecutors said.
In addition to his criminal case, the government also filed a parallel civil enforcement action against Grossman.
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