SEC probes new $900m Ponzi scheme

  •   The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Infowars.com Twitter Alex Jones' Facebook Infowars store

Alan Rappeport
Financial Times
April 21, 2010

US authorities on Wednesday charged a Miami businessman with running a $900m Ponzi scheme and illegally using investors’ money to fund his lavish lifestyle.

  • A d v e r t i s e m e n t
  • {openx:49}

The US Securities and Exchange Commission has accused Nevin Shapiro, founder of Capitol Investments USA, of defrauding investors by selling the securities that he told them would fund the company’s grocery distribution business, but instead spending their money on other ventures and on himself.

“Shapiro lured investors by falsely touting Capitol’s securities as a risk-free investment with extraordinarily high returns,” Eric Bustillo, head of the SEC’s Miami office, said. “He used his prominence and prestige to gain investors’ trust in funding Capitol’s grocery diverting business, but behind their backs he diverted their money to enrich himself.”

According to the SEC, Mr Shapiro promised 60 investors 26 per cent annual returns. His grocery business was supposed to be buying low-cost groceries in certain regions and reselling them at higher prices in other more expensive areas.

READ FULL ARTICLE

This article was posted: Wednesday, April 21, 2010 at 3:03 pm







Infowars.com Videos:

Comment on this article

Comments are closed.


Watch the News

FEATURED VIDEOS
White House Tells Parents: Children Could Be Terrorists! See the rest on the Alex Jones YouTube channel.

Al Sharpton: Mob Rat For The FBI See the rest on the Alex Jones YouTube channel.

© 2013 Infowars.com is a Free Speech Systems, LLC company. All rights reserved. Digital Millennium Copyright Act Notice.