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Florida Man Hit with Fraud Charges in Alleged Ponzi Scheme
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(April 21, 2010 - Wednesday) - Just when you thought all was clear on the Ponzi home front, this story from the Wall Street Journal’s law blog rears its head.
According to the story, a complaint was filed Wednesday in New Jersey alleging that Florida entrepreneur Nevin Shapiro and his company Capitol Investments USA defrauded investors of at least $80 million through a Ponzi scheme.
A Bloomberg report says that the complaint claims Shapiro gathered money from investors from January of 2005 to November of 2009 which he claimed would be invested in “Capitol,” a Florida-based wholesale grocery distributor.
Apparently (“allegedly”)Shapiro had no legitimate business during this time and used the funds he collected from investors to fund principal and interest payments to existing investors and spent millions more on personal expenses.
Shapiro surrendered to authorities yesterday and is expected to appear in federal court today, where his attorneys will address the charges.
If you have lost your hard-earned dollars due to the devious actions of a broker or investment company the investment fraud attorneys at the Hayes Law Firm can help. Contact us today for a free consultation with an experienced investment fraud lawyer.
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