Twin Long Island brothers charged in $50 million investment fraud case as trial opens
Federal prosecutors say Adam and Daniel Kaplan bilked dozens of investors, forged records, and pressured whistleblowers as their case began in Central Islip
Adam and Daniel Kaplan, two Long Island financial advisers, opened their federal trial in Central Islip Monday, accused by prosecutors of defrauding dozens of clients out of more than $50 million between 2018 and 2021. The government contends the brothers forged bank records, laundered funds through personal accounts, and used front companies to conceal transfers that lined their pockets.
Prosecutors said the Kaplans lured clients with investments that carried a purported 1 percent commission, while the actual fees charged were two to three times higher. They allegedly forged documents to mask payouts and moved money into accounts labeled Kaplan Sale on bank statements. In one instance, a client’s $3,000 check was doctored into a $23,000 payment. The scheme also extended to two side ventures—an apparently lucrative flower business and a moving company—that prosecutors said functioned as fronts to siphon more capital from investors.
Among the victims was a blind woman who was persuaded to take out a loan she did not need, a detail prosecutors said illustrated the manipulation at the core of the scheme. Investigators say the brothers sought to expand the scheme by involving the flower business and moving company as additional fronts to extract more funds from investors.
When investigators tightened the net, prosecutors said the Kaplans pressed to silence whistleblowers. Adam Kaplan allegedly texted co-conspirator Ron Roth—who later pleaded guilty and agreed to testify—that he wanted his victims peeing blood and missing teeth. Even after his arrest, prosecutors said Adam Kaplan texted victims through Roth to try to deter testimony. Roth’s guilty plea and testimony are central to the government's case, though defense lawyers argued that Roth’s account is unreliable.
Adam Kaplan’s attorney, Mark Cohen, told jurors that Roth is a liar and that the government cannot rely on his version of events. Daniel Kaplan’s attorney, Claire Blumenthal-Buck, dismissed the government's claims as merely “a story” built on assumptions and argued her client was not the central figure in the alleged scheme.
The Kaplans were named in a 16-count indictment in July 2023, with a superseding complaint filed in February adding two counts alleging witness intimidation and destruction of evidence from April 2023 to last September. Prosecutors described the scheme as spanning roughly three years and leveraged multiple entities to siphon funds from investors who believed they were participating in legitimate investments.
The case underscores ongoing concerns about the integrity of financial advisers and the need for rigorous oversight and auditing of client assets, particularly when complex investments and related-party ventures are involved. The trial is expected to continue as jurors hear testimony and examine financial records and communications from both sides, with additional witnesses anticipated in the coming days.