Middletown High School Graduate Pleads Guilty to $200K Wire Fraud

A former Middletown resident and 2007 graduate of Middletown High School pleaded guilty today to wire fraud after taking more than $200,000 in investments for a bogus website and iPhone app, according to Connecticut's U.S. Attorney's office.

Jonathan Gracia, 24, formerly of Middletown, waived his right to indictment and pleaded guilty today before U.S. Magistrate Judge Thomas P. Smith in Hartford to one count of wire fraud stemming from an investment fraud scheme.

According to court documents and statements made in court, Gracia falsely told friends and acquaintances that he was developing a website for which he had potential buyers, and that he had developed an “app” for the iPhone, and then solicited investments and loans from his victims in connection with both of these purported ventures. 

Gracia regularly told the victims that they would receive outsized returns on their investments. As part of the scheme, he created bogus documents to deceive his victims, including fake checks, bogus bank account statements and a letter that he created on what appeared to be the letterhead of a prominent Connecticut hedge fund management company. 

Through this scheme, Gracia defrauded his victims of at least $200,000. He will be sentenced by U.S. District Judge Vanessa L. Bryant on Sept. 10, at which time he faces a maximum term of imprisonment of 20 years.

He has been detained since his arrest on March 18.        

This matter is being investigated by the Federal Bureau of Investigation, with the assistance of the Branford and Stamford Police departments. The case is being prosecuted by Assistant U.S. Attorney Paul A. Murphy.