"SEC Charges Prominent Miami Beach Businessman in $900 Million Ponzi Scheme
FOR IMMEDIATE RELEASE
Washington, D.C., April 21, 2010 — The Securities and Exchange Commission today charged a prominent Miami Beach-based businessman and philanthropist with fraud for orchestrating a $900 million offering fraud and Ponzi scheme.
The SEC alleges that Nevin K. Shapiro, the founder and president of Capitol Investments USA, Inc., sold investors securities that he claimed would fund Capitol’s grocery diverting business. Shapiro told investors that the securities were risk-free with rates of return as high as 26 percent annually. Instead, Shapiro was actually conducting a Ponzi scheme and illegally using investor money to pay for other unrelated business ventures and fund his own lavish lifestyle. When investors questioned Capitol’s business, Shapiro showed them fabricated invoices and purchase orders for nonexistent sales."
[read full at SEC.gov]
Miami Businessman Charged With $900 Million Ponzi Scheme
4/21/2010 07:23:00 PM | via @Dvolatility |
The Madoff aftershocks continue... Not quite $50 billion but it's up there.