Ponzi schemes

  • 21 Apr 2010 at 12:23 PM

Florida Grocery Arbitrageur Busted in $900M Ponzi Scheme

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Only in South Florida can a guy dupe investors out of $900 million by promising guaranteed annual returns of 10-26 percent from profits on arbitraging groceries.

Reminds you of the Seinfeld episode when Kramer and Newman decided to collect empty bottles in New York and drive them to Michigan to get the extra deposit money. But, that’s exactly what Nevin Shapiro, a 41-year-old Miami Beach businessman, did from 2004 until the feds caught up with him.

Shapiro turned himself in to authorities in New Jersey (we’re not sure what he was doing in Newark) this morning and has been charged with civil fraud by the Securities and Exchange Commission. (read the SEC complaint.) Under the name, Capital Investments USA Inc., Shapiro ran a classic Ponzi scheme, collecting cash from hundreds of Floridians with new investors going to pay off old ones. Continue reading »

  • 08 Apr 2010 at 4:13 PM

“Pretty Okay Dude” Defense Turns Out Not To Work For Tom Petters

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Tom Petters was sentenced by a judge today for his $3.65 billion Ponzi scheme and surprise! The fact that his lawyer described him as a “a flawed, but benevolent individual, a very decent guy” (save for the whole massive scam thing) did not help much.

A federal judge sentenced Minnesota Petters to 50 years in prison…The sentence means the 52-year-old founder of Petters Group Worldwide likely will spend the rest of his life behind bars. Prosecutors sought a 335-year sentence, while the defense said a term as short as four years was more appropriate. Petters blew kisses to family members in the packed St. Paul, Minnesota courtroom after U.S. District Judge Richard Kyle handed down the sentence.

  • 18 Feb 2010 at 3:07 PM

Spotted: Ruth Madoff

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Ruth Madoff is at the social security office in Rockland County, circa now, and not looking that bad, all things considered.