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Cyrus R. Vance, Jr.

District Attorney, New York County

For Immediate Release
October 17, 2017

DA VANCE: MAN SENTENCED TO 6-TO-18 YEARS IN PRISON FOR STEALING MILLIONS OF DOLLARS THROUGH PONZI SCHEME

Manhattan District Attorney Cyrus R. Vance, Jr., today announced the sentencing of STEVEN CANADY, 45, to 6-to-18 years in state prison for stealing millions of dollars from clients of his company, ALLIANCE WARBURG CAPITAL MANAGEMENT. On June 8, 2017, the defendant and his company were convicted by a New York State Supreme Court jury of all of the charges in the indictments against them, including Grand Larceny in the Second and Third Degrees, Criminal Possession of Stolen Property in the Second and Third Degrees, Scheme to Defraud in the First Degree, and Forgery in the Third Degree.
 
“The defendant dangled millions of dollars in loans and financing in front of his victims, who believed that he was helping them fund various business ventures,” said District Attorney Vance. “In reality, every bank document, letter, and financial record associated with the defendant’s business dealings was falsified for the sole purpose of bringing more victims into this Ponzi scheme.”
 
As proven at trial, between May 2010 and June 2015, CANADY stole millions of dollars from victims through a scheme involving his investment firm, ALLIANCE WARBURG CAPITAL MANAGEMENT. As part of the scheme, the defendant falsely promised to provide funding to companies seeking loans after the companies had paid a fee to CANADY, who described the deposit as pre-paid interest or a fully refundable due diligence fee. None of the companies, however, received the promised financing or refunds, and instead, CANADY used the money to fund his own lavish lifestyle, or in some cases, pay off earlier victims of the scheme.
 
Assistant District Attorney Adam Maltz handled the prosecution of the case with Assistant District Attorney Michael Ohm, Deputy Chief of the Rackets Bureau, under the supervision of Assistant District Attorney Judy Salwen, Principal Deputy Chief of the Rackets Bureau, Assistant District Attorney Jodie Kane, Chief of the Rackets Bureau, and Executive Assistant District Attorney Michael R. Sachs, Chief of the Investigation Division. Rackets Investigator Brian Conway, Supervising Rackets Investigators Donato Siciliano and Gregory Dunlavey, Principal Financial Investigator Michael Kelly, Trial Preparation Assistants Jessica Lempit and Rebecca Goldberg, and Investigative Analyst Jacob Diamond provided additional assistance with the case.
 
 
Defendant Information:
 
 
STEVEN CANADY, D.O.B. 1/26/1972
New York, NY
 
Convicted:
  • Grand Larceny in the Second Degree, a class C felony, 5 counts
  • Criminal Possession of Stolen Property in the Second Degree, a class C felony, 5 counts
  • Grand Larceny in the Third Degree, a class D felony, 2 counts
  • Criminal Possession of Stolen Property in the Third Degree, a class D felony, 2 counts
  • Scheme to Defraud in the First Degree, a class E felony, 1 count
  • Forgery in the Third Degree, a class A misdemeanor, 2 counts
 
Sentenced:
  • 6-to-18 years in state prison
 
 
ALLIANCE CAPITAL WARBURG MANAGEMENT
New York, NY
 
Convicted:
  • Grand Larceny in the Second Degree, a class C felony, 2 counts
  • Criminal Possession of Stolen Property in the Second Degree, a class C felony, 2 counts
  • Grand Larceny in the Third Degree, a class D felony, 2 counts
  • Criminal Possession of Stolen Property in the Third Degree, a class D felony, 2 counts
  • Scheme to Defraud in the First Degree, a class E felony, 1 count
  • Forgery in the Third Degree, a class A misdemeanor, 2 counts
 
Sentenced:
  • $2 million judgment order
 
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