Real estate investment chief sentenced in securities fraud case

By Phil Hall

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Carlton P. Cabot, a Stamford resident who was formerly CEO of Boston-based Cabot Investment Properties LLC (CIP), was sentenced to 10 years in prison for his role in defrauding elderly investors through phony tenants-in-common securities offerings issued between 2008 and 2012.
“Carlton Cabot took $17 million from vulnerable investors and spent it lavishly on himself, and then lied to cover it up,” said Preet Bharara, U.S. Attorney for the Southern District of New York. The victims, many of whom were in their 70s and 80s, were simply looking for a steady income stream to sustain them in their retirement. Now, instead of economic safety and security, they are faced with financial ruin. Cabot has rightfully been held to account for his selfish and criminal acts.”
Cabot, who pleaded guilty in June to the charges, was sentenced to three years of supervised release and ordered to pay $17 million in restitution and forfeiture. Cabot’s co-defendant, ex-CIP chief operating officer Timothy J. Kroll, pleaded guilty last October and is awaiting sentencing.

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