Federal authorities say a man orchestrated a scheme that defrauded investors out of $4 million that he used to fund a lavish life style that included a $1 million home and luxury cars.
Nicholas Lattanzio, of Montclair, faces three counts of wire fraud and two counts of securities fraud. He was arrested Wednesday morning at a West Orange residence and was due to make a court appearance later in the day.
Prosecutors say the 58-year-old Lattanzio operated the Black Diamond Capital Appreciation Fund.
They say that from June 2013 through November 2014, Lattanzio, his fund and several other related entities collected millions of dollars in upfront fees from unsuspecting investors. They got the funds in exchange for the promise of future loans or investment opportunities that prosecutors say did not materialize.
