By Kevin Deutsch
A Parkland man who defrauded aged investors out of millions of dollars was sentenced to 87 months in federal prison on Thursday, according to the Justice Department.
Isaac Grossman, 47, of Heron Bay, ran a senior citizen fraud scheme in which he sold shares of his South Florida-based technology company to senior citizens across the United States and then misappropriated their money for his personal use, federal prosecutors said.
U.S. District Judge Raag Singhal sentenced Grossman in federal court in Fort Lauderdale after Grossman had previously pleaded guilty to charges of wire fraud, mail fraud and money laundering. Grossman had faced up to 50 years in prison for his crimes.
He was also ordered to pay nearly $3 million in restitution, according to court records.
Grossman will be credited with about seven months in prison and must surrender to the Federal Bureau of Prisons no later than April 8, records show.
From September 2014 to April 2018, Grossman raised about $2.4 million in investor funds for his company, Dragon-Click Corp., by soliciting investment from senior retirees across the country, prosecutors said.
Grossman’s presentation to investors: Dragon-Click was developing a groundbreaking Internet application, and they were lucky enough to come in on the ground floor. He told them that the new shopping app would allow users to post a picture of any item they might want to buy, immediately recognize all retailers selling the item, and provide price comparisons and links for to buy.
Grossman admitted to falsely telling investors they were going to double, triple or quadruple their money. According to the DOJ, he even claimed that Dragon-Click was about to be sold to a big tech company like Google, Apple, or Amazon for over $1 billion.
Before raising funds for Dragon-Click, he hid from investors that the Financial Industry Regulatory Authority had permanently banned him from acting as a broker or associating with brokerage firms.
He also hid the fact that he had been permanently banned from commodity trading by the US Commodity Futures Trading Commission.
With investors’ money in hand, Grossman spent $1.3 million of his fraudulent winnings on gambling, diamond jewelry, luxury cars, mortgage payments, tuition payments for his children’s private education and other personal expenses, including a McLaren MP4-12C, a Chevrolet Corvette and a 4.81-carat diamond ring, prosecutors said.
In addition to his criminal case, the government has also filed a parallel civil suit against Grossman.
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Kevin Deutsch is an award-winning crime reporter and author. A graduate of Florida International University, Kevin has worked on the staff of the Miami Herald, New York Daily News and Palm Beach Post.