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TagsFormer NYC man was on the run for 13 years
A con man who eluded authorities for 13 years before his arrest last June in Las Vegas pleaded guilty Monday to conspiring with a business partner to defraud investors in New Jersey of more than $1 million in the early 1990s.
Douglas D'Arpino, 64, formerly of New York City, pleaded guilty to a second-degree charge of conspiracy before state Superior Court Judge Eugene H. Austin in Hackensack, according to state Criminal Justice Director Stephen J. Taylor.
Under the plea agreement, D'Arpino faces a sentence of up to five years in state prison. He must pay restitution of approximately $510,000, representing his share of the money stolen by him and his partner, R. Steven Stackpole. Stackpole, 71, was sentenced to six years in prison in 1998 in connection with the scheme.
Stackpole formerly operated an investment and insurance company called Stackpole Designs Agency in River Edge. The state investigation revealed that between 1989 and 1994, Stackpole conspired with D'Arpino to get clients who had retirement and investment accounts to invest a total of approximately $1.9 million in various fraudulent schemes.
One scheme involved "wishing wells" that D'Arpino and Stackpole claimed would be placed in malls to collect money for a charity that published information about missing children. A number of wishing wells were placed in businesses, but no money was provided to the charity.
D'Arpino and Stackpole promised a 15 percent rate of return to investors. In reality, they charged investors undisclosed fees of up to 20 percent and diverted funds for their personal use.
Of the $1.9 million in invested funds, approximately $500,000 was returned to investors as "dividends." The remaining $1.4 million was stolen. Some investors lost their life savings. The investors included several firefighter associations.
Judge Austin scheduled sentencing for D'Arpino for Feb. 18. D'Arpino, who had been using the alias Paul D. Martin, surrendered to authorities in Las Vegas on June 10.
State Deputy Attorney General Francine S. Ehrenberg is prosecuting the case. D'Arpino and Stackpole were indicted in 1997 as a result of an investigation by the Division of Criminal Justice. The investigation was led by Lt. John Jespersen and former Supervising Deputy Attorney General Rodger Wolf.
— TOM HESTER SR., NEWJERSEYNEWSROOM.COM
