CENTRAL ISLIP, NY – Earlier today, David Bodian, a Long Island attorney, pleaded guilty to wire fraud for stealing more than $1.3 million from a trust fund for which he was the trustee. Pursuant to his plea agreement with the government, Bodian has agreed that he is liable to pay restitution in the amount of $1,393,559 to the Lou Bacon Trust. When sentenced, Bodian faces up to 20 years in prison.
The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Philip R. Bartlett, Inspector-in-Charge, United States Postal Inspection Service (USPIS).
According to court filings and facts presented at the plea hearing, in approximately 2000, Bodian was appointed trustee of the Lou Bacon Trust, a trust fund that benefitted a number of individuals and charities. At the time of his appointment, the trust held more than $1 million in total assets. In approximately 2005, Bodian began looting the fund to pay for his personal expenses, including a car, high-end audio equipment, home renovations, and international vacations. From approximately 2005 to 2015, Bodian stole almost the entirety of the trust’s funds, leaving the trust with a mere $10,000 in cash. To perpetuate the scheme, Bodian lied to the beneficiaries of the trust about the amount of money in the accounts. For example, when a beneficiary asked for a copy of a trust bank statement, Bodian borrowed $150,000 from a friend to deposit in the trust’s account to inflate the trust’s assets. After providing a bank statement to the beneficiary that reflected the $150,000 Bodian had borrowed, he transferred the money back to his friend.
Today’s plea took place before United States Magistrate Judge Arlene R. Lindsay at the United States Courthouse in Central Islip, New York. The case has been assigned to United States District Judge Arthur D. Spatt.
The government’s case is being prosecuted by the Office’s Business and Securities Fraud Section. Assistant United States Attorney Tyler Smith is in charge of the prosecution.
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The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit ww.StopFraud.gov.
The Defendant:
DAVID BODIAN
Age: 58
Dix Hills, New York
E.D.N.Y. Docket No. 16-CR-091 (ADS)