A Brooklyn, N.Y., man and his financial firm located in New Jersey both face numerous charges for allegedly misappropriating funds from a relative for personal expenses, following a grand jury indictment.

Samuel S. Franco, 58, formerly of the Oakhurst section of Ocean Township, N.J., and his limited-liability company, Signature Investment Holdings, with an address matching his New Jersey home, were both named in the document by a Monmouth County grand jury regarding the receipt of a $1 million client investment used for personal expenditures.

According to the Monmouth County Prosecutor’s Office, Franco established Signature Investment Holdings, a financial investment firm, in 2001 and maintained sole control of the company.

An investigation by the prosecutor’s office began following contact from the attorney of the alleged victim. That inquiry revealed that in August 2005, Franco allegedly solicited a relative to invest $1 million with his firm in exchange for a guaranteed return of 20% by the end of that year.

A written agreement between the parties allegedly indicated that Franco would invest in the purchase and sale of European bank instruments, but officials said Franco never invested the money nor did he return it to the alleged victim in 2005. In 2006, Franco made numerous representations that he would return the $1 million along with profits made from the investment, but those funds have yet to be paid, prosecutors allege.

An audit of a bank account for Signature Investment Holdings indicated that Franco used the funds for personal expenses, including the remodeling of a Florida condominium and payments to Mercedes Benz and American Express.

Franco faces charges including one count of second-degree failure to make required disposition of property received and second-degree misconduct by a corporate official. He faces a maximum potential sentence of 10 years in state prison, if convicted of any of the second-degree charges.

The grand jury indictment also charges Signature Investment Holdings with second-degree failure to make required disposition of property received, which could lead to a potential $450,00 fine and dissolution of the firm if a conviction is rendered.