GLEN COVE, N.Y. (1010 WINS/WCBS 880) – A former investment broker was sentenced today to seven and a half years in prison for running a $1,000,000 Ponzi scheme that targeted friends and acquaintances, Nassau County District Attorney Anne Donnelly announced Thursday.
Rand Heckler, 67, a Glen Cove resident, also received a civil judgement order for the restitution balance of $919,160 and forfeited $48,000 that was seized from his bank account.
In April 2023, Heckler pleaded guilty to grand larceny and scheme to defraud.
Beginning in 2015, Heckler recommended to his friend and friend’s son that they invest in a hedge fund of stocks and securities that he was managing, officials said.
The offer was only to be for Heckler’s closest 15 to 20 friends and associates, prosecutors said.
Between December 2015 and January 2020, the victims wrote Heckler 24 checks, totaling $755,159. During that time, Heckler showed them statements with the names of the stocks and the hedge fund account’s current value.
Heckler also showed them false trade confirmations as proof that the stocks had been purchased.
In January 2020, the friend’s son, who has power of attorney for his father, asked the defendant for $100,000 from his father’s account, part of which was for his children’s trust fund.
In February 2020, after several weeks of delay, he received the $100,000 via a wire to his bank account and was told the money was from the sale of stock.
Authorities discovered that in May 2020, after receiving the case from the Securities and Exchange Commission, that the money was wired directly from another victim in February. That victim, Heckler’s neighbor, went to the bank with the defendant in February 2020 believing she was wiring a $100,000 life insurance payment from her deceased husband into the hedge fund, when in fact, she was wiring the money directly to the first victim’s son.
Heckler's neighbor was led to believe she would receive monthly dividend payments from her investment and did not know there was a problem until she was contacted by investigators.
During the investigation, at least two other victims were discovered to have been defrauded by Heckler in a similar manner, officials said.
Heckler also solicited additional victims by cold-calling people in other states and getting them to agree to invest.
According to police, Heckler stole $1,004,159 in total from four victims. He spent the money on his mortgage, a country club membership, credit card payments and daily expenses like dry cleaning and phone bills.
"This defendant executed a classic Ponzi scheme, promising his friends and neighbors high-value investments, using money from new investors to pay earlier ones, and ultimately stealing a total of more than $1 million from several victims," DA Donnelly said. "Heckler lived large off of his victims’ funds, paying for a country club membership, the mortgage on his home, and his daily living expenses. Having a trusted financial advisor is essential to making safe and smart investments. Rand Heckler used the trust of friends and neighbors against them only to enrich himself."
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