A West Islip man -- convicted in a fraud case -- was remanded to a federal jail Thursday after he allegedly lied to government officials and violated the terms of his bail, federal prosecutors said.
Mark Hotton, 47, appeared Oct. 17 at the U.S. District Court in Central Islip and was ordered remained to custody. A spokesman for the U.S. Attorney for the Eastern District of New York said Hotton is to now remain incarcerated until his sentencing on Feb. 14.
The former stockbroker pleaded guilty in July to conspiring to launder illicit proceeds in connection with what prosecutors described as “almost two decades of fraud.”
Prosecutors said Hotton used funds from January 1995 to October 2012 that he allegedly obtained from a series of fraud schemes – including securities fraud and mail fraud – as well as other crimes to allegedly promote illegal conduct. The federal officials said Hotton laundered proceeds to pay his employees in cash and avoided paying federal withholding taxes and pension benefit funds on those wages.
“The defendant Mark Hotton has proved himself unspervisable and incapable of following the court’s bail restrictions,” Assistant US Attorney Burton Ryan said in a letter to the court.
Ryan said Hotton “repeatedly lied to Pre-Trial Services” about his employment. He also allegedly falsely claimed to be attending a training program when his neighbors spotted him riding the ferry to Fire Island on Labor Day, prosecutors said.
The U.S. Attorney’s office also said Hotton provided “forged and fraudulent” documents and hid the fact that he was fired from his job.
“Hotton, in addition, repeatedly ignored the restrictions on his activities and movement,” the letter said.
Hotton is due to be sentenced Feb. 14 before Judge Joanne Seybert at the federal courthouse in Central Islip.