AG: Men stole money to pay for prior crimes

ALBANY — A Guilderland man is accused of scamming new victims to pay restitution to old victims, while a Schenectady man allegedly helped, the state Attorney General’s office said Tuesday.

David A. Mazzeo, 58, of Guilderland, and Michael C. Caruso, 61, of Schenectady, are charged in a nine-count indictment accusing them of scheme to defraud, money laundering and other crimes.

Mazzeo is accused of seeking investors for supposed coal and gas projects, then using the proceeds instead to pay restitution in previous fraud cases in Montgomery and Albany counties, the AG’s office said.

“Defrauding consumers in order to pay off one’s prior scam victims shows a blatant disregard for the law, with no remorse,” Attorney General Eric Schneiderman said in a statement. “My office will continue to work to root out and prosecute those who defraud hardworking New Yorkers.”

Caruso then assisted in obtaining the money and funneled it through a bank account held in his name to launder the cash, officials said.

In all, the scheme netted nearly $150,000. Mazzeo used the money to pay attorney’s fees and Caruso, and make various purchases of alcohol, tobacco and at Victoria’s Secret, officials said.

Mazzeo has prior convictions from Fulton, Montgomery and Albany counties from 2012 and 2013, where he admitted to taking more than $175,000 from his victims.

He repaid $25,000 to a Montgomery County victim, agreed to repay the Fulton County victim and agreed to repay $150,000 to his Albany County victims, all in exchange for probation, officials said.

Instead of repaying the money legitimately, Mazzeo used the new coal and natural gas project schemes to defraud further individuals between July 2012 and September 2013. Many of the victims in the coal and natural gas project schemes live out of state, the AG’s office said.

Mazzeo and Caruso each face one count of second-degree money laundering and first-degree scheme to defraud, both felonies.

Mazzeo faces two felony grand larceny counts, securities fraud, tax fraud and offering a false instrument for filing counts.

The two men were arraigned and ordered held — Caruso on $10,000 bail and Mazzeo on $200,000 bail. They are due back in court later this month.