The former head of a suburban youth soccer club solicited members, friends and volunteers of the organization for more than $5 million in what federal prosecutors said Tuesday was a Ponzi scheme.
Robert Rocco, 48, of Dix Hills, pleaded not guilty to mail and wire fraud charges at his arraignment in U.S. District Court in Central Islip. He was released on $500,000 bond.
A lawyer from the federal public defender’s office, which is representing Rocco, did not immediately return a telephone call seeking comment.
A nine-page indictment accuses Rocco of promising investors between a 15 percent and 18 percent return on their money. He allegedly told them he had a company that was providing financing to a Shinnecock Indian tobacco shop, as well as a credit card-processing venture.
Prosecutors said the $5 million he collected between 2006 and 2013 was never invested in the purported businesses. Instead, he solicited money from new investors to make small monthly payments to earlier investors to avoid being detected, prosecutors said.
Rocco is also accused of mailing fraudulent account statements to investors.
“Rocco employed fraud and deceit to victimize friends and neighbors and even used his local soccer club to further his schemes,” U.S. Attorney Loretta Lynch said.
As president of the soccer club, he controlled its treasury, prosecutors said. He is accused of depositing nearly $67,000 in club funds into the Ponzi scheme and then soliciting donations from club benefactors to replenish the treasury.
Rocco is believed to have resigned as club president in the past few days. Emails to members of the club’s board of directors seeking comment were not immediately returned.
Dix Hills is located about 50 miles east of New York City.
“While not physically violent, Rocco’s alleged actions had a significant impact on the lives of his victims who lost their hard-earned money to someone they trusted,” said George Venizelos, the FBI’s assistant director-in-charge of the New York field office.
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