West Islip resident Mark Hotton is back in jail to await sentencing on fraud conspiracy charges following a request by the United States Attorney's office.
In a letter sent Tuesday to Senior United States District Judge Joanna Seyber the government’s attorney stated Hotton had committed criminal acts while on bail and failed to comply with other release conditions.Hotton, according to the letter, lied about his employment, traveled without approval, threatened an employer and never met the minimum million dollars security set by the court as part of his release agreement. “The defendant Mark Hotton has proved himself unsupervisable and incapable of following the Court’s bail restrictions,” writes United States Attorney Loretta E. Lynch, in the letter. “Throughout his release, Hotton’s actions have been entirely contemptuous of the Courts rulings. He has proven himself a danger to the community. The Court should remedy this situation and remand the defendant pending sentence.” According to Newsday Hotton was subsequently picked up by police Thursday and will be held in federal custody until his sentencing on February 14, 2014. The 47-year-old former stockbroker was initially held without bail after his October, 2012 arrest when federal prosecutors charged him with defrauding producers of the show "Rebecca: The Musical" by fabricating bogus investors, while collecting more than $30,000 in fees and commission. Prosecutors allege that Hotton went so far as to fake the death of one phony investor. According to the district attorney’s office Hotton used funds he obtained from a series of securities fraud schemes, mail fraud schemes and other crimes to promote his continuing illegal conduct. Hotton also laundered proceeds of his frauds to pay employees cash wages, thereby avoiding federal withholding taxes intended for Social Security, Medicare and Medicaid, according to the district attorney. He also laundered funds to avoid required payments to union pension and benefit funds. Hotton plead guilty on July 30 and is facing up to 20 years in prison, forfeiture of $1.8 million and restitution of $5.75 million to victims of his nearly two decades of fraudulent activities. He was released on bail on July 31 under specific conditions: a $3,000,0000 bond, secured by $1,000,000 in money or property; confinement to his residence except for work, church, medical or legal appointments pre-approved and an agreement to commit no new federal state or local crimes.