Authorities have charged twin brothers from Long Island, Adam and Daniel Kaplan, with defrauding numerous clients of over $5 million — a tactic that victimized even a blind woman into taking out an unnecessary loan, as the trial commenced on Monday.
Prosecutors stated that the 36-year-old siblings misled up to 50 clients regarding investment opportunities and returns, engaging in forgery of bank documents and checks while keeping the ill-gotten funds for themselves.
“The Kaplans stole millions from their unsuspecting clients,” remarked Assistant US Attorney Rebecca Urquiola to the jury in US District Court in Central Islip.
“Their fraudulent activities spanned from 2018 to 2021 when they served as financial advisers,” Urquiola explained.
“You will discover that Adam and Daniel engaged in deceitful practices,” she continued. “They initially directed funds straight into their personal accounts, misleading clients by labeling the transactions as ‘Kaplan Sale’ on bank statements.”
In July 2023, the brothers were indicted on 16 counts, and in February, Adam Kaplan faced additional charges in a revised complaint for alleged attempts to intimidate witnesses and destroy evidence between April and September 2023.
Prosecutors claimed the Kaplans tricked clients into signing agreements that nominally charged a 1% commission, yet in reality, clients were billed two to three times that amount.
In a striking instance, they reportedly altered a client’s $3,000 check into a payment of $23,000.
Adam Kaplan later solicited investments for a supposedly lucrative flower shop and moving business — both of which were alleged fronts intended for further embezzlement, according to Urquiola.
As clients began to comprehend the scheme and law enforcement began their investigation, the brothers allegedly attempted “damage control” by intimidating whistleblowers.
Urquiola stated that Adam Kaplan sent a message to co-conspirator Ron Roth — who has since pleaded guilty and is expected to testify against the Kaplan brothers — expressing a desire for his victims to be “peeing blood and missing teeth.”
“Even after being arrested for his fraudulent activities, Adam Kaplan persistently messaged his victims through Ron Roth to discourage them from testifying,” Urquiola added. “Roth has accepted guilt and cooperated to potentially receive leniency during sentencing.”
In their opening statements, the Kaplan brothers’ defense attorneys contested the allegations and placed blame on Roth.
Adam Kaplan’s attorney, Mark Cohen, told jurors, “Ron is not trustworthy — he lied and when faced with accountability, he shifted the blame.”
“Regarding the alleged threats, you will see it’s merely a fabrication linked to Roth’s narrative,” Cohen asserted. “You cannot take Roth’s words at face value.”
Matthew Blumenthal-Buck, representing Daniel Kaplan, dismissed the government’s claims as inconsequential “tales,” adding, “My client isn’t central in this narrative, and the evidence will demonstrate that.”
