The call was received at 4.20pm (8.20am NZT) reporting several people had been injured and the yacht was taking on water, Coastguard Lieutenant Joe Klinker told APNZ.
However, a major search operation involving vessels and aircraft from the New York and New Jersey Police and Coast Guard covering 638 nautical miles uncovered no sign of wreckage or victims, and the search has since been called off.
"More than 200 first responders assembled mass casualty reception areas in Newark and Coast Guard Station Sandy Hook, preparing to receive the reported injured passengers,'' Commander Kenneth Pierro said in a statement.
Distress calls wasted taxpayer money, put emergency services at risk and could interfere with the Coast Guard's ability to respond to real distress calls, he said.
Making a false distress call carries a maximum penalty of 10 years in prison, a US$250,000 fine and reimbursement to the Coast Guard for the cost of the search.
A US$1000 reward is offered by Coast Guard for information leading to the arrest and prosecution of anyone responsible for making hoax calls.