A Southampton investment advisor has been sentenced to six years in federal prison for stealing more than $1 million from clients and using the money to fund a lavish personal lifestyle.
In federal court in Central Islip on Thursday, Jeffrey Slothower, 47, was sentenced to 72 months in prison for wire fraud, investment adviser fraud, and money laundering. U.S. District Judge Gary R. Brown also ordered Slothower to pay $1,160,936 in restitution and forfeit the same amount.
The sentence was announced by U.S. Attorney’s Office for the Eastern District of New York and the Federal Bureau of Investigation. Prosecutors said Slothower abused his position of trust while operating Battery Private, a New York investment advisory firm.
According to evidence presented at trial, Slothower solicited more than $1 million from a California couple by promising high, risk-free returns through what he described as bonds backed by homeowners association fees. Instead of investing the money as promised, Slothower transferred the funds into his personal accounts and used them to purchase luxury items, including a $125,000 Mercedes-Benz SUV, a Hamptons country club membership, designer clothing, a Rolex watch, and other personal expenses.
To conceal the scheme, Slothower made payments to the victims that were falsely represented as legitimate investment returns. Prosecutors said the fraud continued through 2018, with Slothower using new client funds to pay earlier victims in a classic Ponzi-style pattern.
During the same period, Slothower also committed mortgage fraud by falsely claiming the stolen funds came from the sale of personal collectibles, including fine art and wine collections. He later lied under oath at trial when confronted about those claims.
Federal officials said the sentence reflects the seriousness of exploiting client trust for personal gain. Slothower will serve his sentence in federal prison.
