NEW YORK (WTEN) – New York Attorney General Letitia James announced the arrests of two defendants charged with operating a nearly decade-long Ponzi scheme, which defrauded investors across the country of more than $1 million. The two men were charged of multiple counts of Money Laundering, Grand Larceny, Securities Fraud, and Scheme to Defraud.
Attorney General James filed a 42-count felony complaint charging Carl R. Carro, 59, of Walton in Delaware County and James W. Doyle, 72, of White Plains in Westchester County. The two men are the purported managing directors of headhunting companies Endeavor Management Solutions, LLC and Endeavor Consultancy, LLC.
“When New Yorkers put their hard-earned savings into an investment, they expect their money to work for them, but the greed of the operators of these corporations never gave victims a chance to make a profit,” said Attorney General James. “After nearly a decade, the Ponzi scheme perpetrated by Carl Carro and James Doyle fell like a house of cards, robbing most victims of thousands of dollars. Today, we’re holding these two men accountable for cheating investors and using investment funds to enrich and dig themselves out of a hole. My office will continue to use every resource at its disposal to hold accountable anyone who tries to cheat innocent New Yorkers out of their hard-earned savings.”
According to the Office of the Attorney General’s (OAG) felony complaint, between at least January 2012 and December 2020, Carro and Doyle solicited investments in their companies, Endeavor Management Solutions and Endeavor Consultancy, from over 50 victims from numerous states, including New York.
Carro and Doyle allegedly told investors that Endeavor was a headhunting firm hired by prestigious clients to find candidates for openings on their boards of directors. The two defendants allegedly promised their victims that investments would be held in an untouched cash reserve fund that purportedly held over $1 million and guaranteed a 10 to 20% return on investment after 30 days.
The complaint says that Carro and Doyle deposited investor monies into various accounts, none of which ever had a balance of more than $200,000. According to the audit, the two spent nearly $500,000 on cash withdrawals, more than $200,000 to pay credit card bills, squandered more than $57,000 on pet expenses, and exhausted more than $350,000 to pay previously defrauded investors, including over $170,000 in restitution to victims in Carro’s prior criminal cases.
The total losses to all victim-investors exceed $1 million.
To further their scheme, Carro and Doyle allegedly made excuses regarding their inability to repay investors. These tactics included telling investors that the bank would not release their funds, when in fact the funds were already depleted; alleging that repayment checks were in the mail, only for investors to receive empty envelopes; and creating a fictitious attorney to act as in-house-counsel during disputes with investors.
The felony complaint also lays out how the two defendants engaged in a complex money-laundering scheme to conceal and promote their ongoing crimes. Carro and Doyle allegedly used bank accounts at multiple financial institutions in an effort to disguise and conceal the true source and ownership of the money.
The complaint further charges that the proceeds were laundered in a Ponzi-like manner to make repayments to defrauded investors without revealing that the source of the repayments was from other defrauded investors. While the defendants repaid some investors a very small percentage of their investment, most investors received no repayment at all.
The OAG’s 42-count felony complaint, filed in Walton Town Court in Delaware County, charges Carro and Doyle, acting in concert, with two counts of Money Laundering in the Second Degree (a class “C” felony), 19 counts of Grand Larceny in the Third Degree (a class “D” felony), 20 counts of Securities Fraud under the Martin Act (a class “E” felony), and one count of Scheme to Defraud in the First Degree (a class “E” felony).
Carro and Doyle were arraigned on Jan. 7. Carro was remanded and Doyle was released on his own recognizance.