A Florida businessman with a penchant for luxury cars, philanthropy and socializing with professional basketball players was charged in federal court today with orchestrating an $880 million Ponzi scheme authorities say bilked at least $80 million from investors in New Jersey and elsewhere.
Nevin K. Shapiro which is Jewish of Ashkenazic origin, 41, surrendered to agents from the FBI and the Internal Revenue Service in Newark and was charged with securities fraud and money laundering for allegedly defrauding more than 60 people. Authorities say he spent up to $35 million of the proceeds on himself, including buying $400,000 seats to watch the Miami Heat professional basketball team, leasing a $4,700-a-month Mercedes-Benz and giving diamond-studded handcuffs to a “prominent” professional athlete.
“This case is a perfect example of greed run amok,” said Michael B. Ward, head of the FBI’s Newark office.
Shapiro of Miami Beach is founder and chief executive of Capitol Investments USA Inc. Authorities say he promised investors returns of up to 26 percent for using their money to buy wholesale groceries and resell them for a profit. In many cases, he made good on those returns, paying roughly $769 million to investors, according to a civil complaint filed today by the federal Securities and Exchange Commission.
But in truth, authorities say, Capitol Investments had little to do with wholesale groceries. Instead of investing, Shapiro used funds from new investors to repay existing ones — making for a classic Ponzi scheme, authorities said.
Shapiro marketed his alleged scheme primarily through contacts he met met through the grocery industry, according to the SEC complaint. Most of his alleged victims reside in Florida and Indiana, said Amie R. Berlin, senior trial counsel for the agency. One alleged victim owns a company in New Jersey and invested roughly $5.4 million with Capitol Investments, according to the criminal complaint.
Meanwhile, authorities say Shapiro used millions to support what U.S. Attorney Paul J. Fishman called a “luxury lifestyle built on a house of cards.” That included buying a $1.5 million dollar Riviera yacht, a $5.3 million home and donating upward of $150,000 to the University of Miami, which named a student-athlete lounge in his honor, they said. A university spokesman did not return a call for comment.
Last year, a group of investors filed an involuntary bankruptcy petition against Shapiro after he failed to make payments. Authorities say the firm owes more than $80 million to investors.
If convicted of securities fraud, Shapiro faces up to 20 years in prison, Assistant U.S. Attorney Justin W. Arnold said. U.S. District Judge Madeline Cox Arleo ordered Shapiro detained until court officials finish reviewing a proposed $10 million bail package. Shapiro’s lawyer, Michael Tein, left court without commenting.
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Dear racist scumbag Europeans (how unusual – but at least you aren’t running expulsions or pogroms or death camps anymore – at least not lately): You will note that the SEC attorney and the US Attorney prosecuting the defendant are Jewish as well. You conveniently ignored that.
Ah yes, and is it necessary to say so in the title? If he was black, say, would it be acceptable for the title to be “Black man from Florida is charged…”?
YES it is necessary! Why not?
Yes its important to note he was Jewish. Its honest and good to know who does what. But you would rather ignore hard evidance, to avoid the public to see paterns, no? Ignorant Tom.
Was it really necessary to scream that he’s Jewish? Is it actually at all important? Methinks the author has something of an agenda here. Good job on keeping the journalistic standards high there, EU Times.
Yes its important to note he was Jewish. Its honest and good to know who does what. But you would rather ignore hard evidance, to avoid the public to see paterns, no? Ignorant Tom.
Ah yes, and is it necessary to say so in the title? If he was black, say, would it be acceptable for the title to be “Black man from Florida is charged…”? No, of course not, it would be patently ludicrous. So why is it acceptable to point out that he is Jewish?
Nah. I think not. It puts far too much importance on his ethnicity, which in most rational peoples’ mind is utterly irrelevant. Golly, is the EU times furthering something of an anti-semitic slant? Perhaps, if it is going to accuse an entire class of people of being money-grabbers, it should remove that plea for donations from the front page.
This tells the story of the typical Jewish life.
Ah yes, and is it necessary to say so in the title? If he was black, say, would it be acceptable for the title to be “Black man from Florida is charged…”? No, of course not, it would be patently ludicrous. So why is it acceptable to point out that he is Jewish?
Nah. I think not. It puts far too much importance on his ethnicity, which in most rational peoples’ mind is utterly irrelevant. Golly, is the EU times furthering something of an anti-semitic slant? Perhaps, if it is going to accuse an entire class of people of being money-grabbers, it should remove that plea for donations from the front page.
Was it really necessary to scream that he’s Jewish? Is it actually at all important? Methinks the author has something of an agenda here. Good job on keeping the journalistic standards high there, EU Times.
Yes its important to note he was Jewish. Its honest and good to know who does what. But you would rather ignore hard evidance, to avoid the public to see paterns, no? Ignorant Tom.
The Jew’s have taught you well.
A PONZI scheme perpretrated by a Jew named “PUTZI”, isn’t that “short” for a “little dick”?