Twins Daniel and Adam Kaplan, of Great Neck, used their position as trusted advisers to steal from clients, prosecutor tells jurors

Twin brothers from Great Neck accused of defrauding at least 50 clients, some elderly or disabled, used their positions as trusted financial advisers to steal millions of dollars, a federal prosecutor told jurors in her opening statement as the siblings’ trial began Monday in Central Islip.

Assistant U.S. Attorney Rebecca Urquiola told the jury Adam Kaplan and Daniel Kaplan diverted funds from clients’ accounts and overcharged clients for advisory fees. She also said the brothers took out loans in their clients' names — and then pocketed the money.

"They stole the money for themselves and left their clients with the bill," Urquiola said.

Daniel and Adam Kaplan, both 36 years old, were charged in a 21-count indictment with conspiracy to commit wire fraud, wire fraud, investor fraud, money laundering and conspiracy to commit money laundering. Prosecutors said the twins stole at least $5 million from clients.

Adam Kaplan faces additional charges of conspiracy to commit bank fraud and attempted obstruction of justice. Both have pleaded not guilty to the charges. The trial is expected to last four to six weeks, U.S. District Judge Joan Azrack told the jury. Testimony in the trial will resume on Thursday. 

Prosecutors said the brothers overcharged $540,000 on advisory fees alone, used clients' money for personal expenses, charged client credit cards and bank accounts without permission and filed fake records to cover up their alleged crimes.

The Kaplans forged or altered documents as part of a scheme that ran from May 2018 to November 2022, according to Urquiola. One client, she told jurors, sent Daniel Kaplan a $3,000 check. Daniel Kaplan altered the check to read $23,000, she said, keeping the money for himself.

Adam Kaplan is also accused of threatening violence against victims and witnesses, prosecutors said. Adam Kaplan allegedly tried to bribe a made-up investigator with a reported gambling problem who would get the charges against them dropped. Adam Kaplan allegedly stuffed thousands of dollars in cash in a box of chocolates as a payoff to the fake investigator, authorities said.

Adam Kaplan’s attorney, Mark S. Cohen, told the jury his client is not guilty of the charges. The company that employed the twins, IHT Wealth Management, set advisory fees that were clearly outlined on monthly statements. Prosecutors say the Kaplans told clients their fees would be 1% of their portfolios, but charged two or three times that.

"If month after month you are charged 2½% how can you say you were deceived?" Cohen asked.

IHT fired the brothers in 2021.

The brothers have been inseparable — they attended the same high school and university, and they both registered with the Securities and Exchange Commission to become advisers — but Daniel Kaplan’s attorney, Claire Blumenthal Buck, spent much of her opening argument urging the jury not to conflate the two.

"They will refer to Daniel as if he and his brother are the same person," Blumenthal Buck told the jury. "They are not. ... Daniel had nothing, nothing to do with this."

Urquiola told the jury they would hear from clients who had longtime relationships with the brothers, only to have their trust betrayed, as well as witnesses who worked with the twins. They will also hear from Ron Roth, who they said teamed with Adam Kaplan nine months after he was indicted in July 2023 to defraud more clients out of another $1 million.

Prosecutors said Adam Kaplan conspired with Roth to fabricate evidence, destroy evidence and intimidate victims and witnesses. Adam Kaplan allegedly texted a skull and crossbones to one victim, telling him, "Stop asking questions."

"No one was threatened, no one was bribed," countered Cohen, Adam Kaplan’s attorney.

Roth has pleaded guilty to criminal charges and agreed to cooperate with the government. He is awaiting sentencing.

Cohen told the jury to be wary of Roth’s testimony. He said the cooperator has a long history of fraud and that the government’s case was built on Roth’s lies.

"He made it up, an elaborate story," Cohen said.