Yonkers architect accused of embezzlement and bankruptcy fraud

For nearly 20 years, Highland Associates Ltd. gave Anthony M. Caprio ever-increasing opportunities to learn the architectural business, the partners claim, not realizing until after he rejected an offer to become a shareholder that he had secretly created a competing firm, steered clients away from Highland and stole more than $1.3 million in business.

Highland Associates, of Manhattan, sued Caprio Feb. 15 in U.S. Bankruptcy Court, White Plains, accusing him of fraud and embezzlement.

When Highland partners Gil Ben-Ami and Glenn Leitch confronted Caprio on a conference call a year ago, the complaint states, Caprio admitted “I got greedy.”

But Caprio’s attorney, Daniel S. Alter, said “there is much more to the story (and much less) than is alleged in the complaint,” and he would file a response with the court this week.

Highland says it employed Caprio as a designer after he graduated from college in 2001 and as an architect after he got his license in 2015.

Caprio was a “blank slate,” according to Highland. The firm mentored him for nearly 20 years, teaching him how to write proposals, manage projects and coordinate the design of buildings. He participated in client meetings and was given significant projects to run.

In December 2020, the firm proposed making him a shareholder, but in February 2021 he rejected the offer.

Highland says it discovered that Caprio had formed A. Caprio Design Inc. in 2007 and began diverting clients and prospects to his own business in 2011.

The firm found about 140 invoices on a company laptop computer for work that A. Caprio Design, based in Yonkers, had done for Highland clients, according to the complaint. A spreadsheet listed $1.34 million in revenues and $1.16 million in profit for Caprio’s business from 2016 to 2020.

Highland alleges that Caprio recruited at least seven other employees to work on A. Caprio Design projects, while those employees and Caprio were being paid by Highland.

Most of the allegedly diverted work was done for Solow Building Co., a client that Highland had served for years and for whom Caprio became the project manager and account executive.

Highland noticed that Solow business began declining around 2015. When the partners asked why, the complaint states, Caprio “would avoid answering the question, shrugging it off as if he did not know.”

Highland sued Caprio for $2 million last April in Manhattan Supreme Court. Two months later, Caprio formed another company, A. Caprio Architect PLLC, based at his Yonkers home.

Then Caprio allegedly drained his business bank accounts, from $16,630 to $100 in one case and for $72,400 to $2,938 in another, before filing for Chapter 7 personal bankruptcy protection last November.

He declared $665,577 in assets — consisting mostly of his share of the Yonkers house — and $418,178 in liabilities. The petition lists three unsecured claims for unknown amounts from Highland as disputed.

The firm argues that Caprio filed for bankruptcy protection to avoid paying back Highland, and that he underreported his income on bankruptcy schedules, “with the actual intent to hinder delay or defraud Highland.”

The company is asking the court court to disallow Caprio from discharging his debts.

Manhattan attorney Michael J. Riela represents Highland.