Irving Stitsky, the former Managing Partner of Cobalt Capital Funding, LLC, and Executive Vice President of Cobalt Real Estate Services, LLC, was sentenced to 85 years in prison, a restitution of $22,075,631 and forfeiting proceeds of $23,152.235 for fraudulently inducing over 250 investors to invest over $23 million in private placement real estate offerings in New York through several misrepresentations.
Beginning in late 2003, Stitsky and 3 other co-defendants fraudulently lured investors into their real estate investing scheme by misrepresenting Cobalt’s operating history, failing to disclose that the company was owned and controlled by Stitsky and Shapiro, two convicted felons, and misstating Cobalt’s property interests. As a result of Stitsky’s scheme, over 250 investors were defrauded and a total of approximately $23 million of investments were used to fund Stitsky’s personal expenses.
