Posted on 01/08/2009 11:07:14 PM PST by 2ndDivisionVet
An 82-year-old businessman was charged Thursday with running a Ponzi scheme that took in at least $17 million from a clientele gleaned largely through ads in Catholic newspapers.
Richard Piccoli of suburban Buffalo declined to comment after appearing in federal court on a criminal complaint charging him with mail fraud. He was ordered to return Tuesday for arraignment.
He could face up to 20 years in prison and a $250,000 fine if convicted.
The U.S. Securities and Exchange Commission, meanwhile, moved to freeze the assets of Piccoli and his 33-year-old company, Gen-See Capital Corp.
Investigators said Piccoli guaranteed annual returns of 7.1 to 8.3 percent on what he said were investments in discounted real estate mortgages. But rather than invest new clients' money, Piccoli used it to pay earlier investors — while directing about $600,000 to himself and his children, according to court documents.
Authorities have yet to determine how much money might be missing, Assistant U.S. Attorney Gretchen Wylegala said.
The criminal complaint said Piccoli appeared to deliberately target clergy, cemetery funds and other church entities by limiting his advertising to Catholic publications.
A simultaneous civil complaint by the SEC seeks an emergency restraining order to halt "an ongoing affinity fraud," a term used when con artists target their own kind. A federal judge did not immediately rule on the request.
A postal inspector who posed as someone interested in investing for his elderly mother said Piccoli told him he had more than 50 priests as clients.
"We're loaded with church funds right now because even the diocese is only payin' 3 percent," Piccoli told Inspector Shelley Carosella, according to an affidavit.
Records show Piccoli took in more than $17 million from more than 250 investors since 2004, including $500,000 in November alone.
(Excerpt) Read more at guardian.co.uk ...
Crime must be the only job that still pays well...
Question is...Did he pay the dividends and were his ‘clients’ happy?
After 33 years, this guy isn’t exactly a ‘Fly by night’ operator.
Congress got a raise. No heavy lifting, short hours, paid ‘speaking’ fees.
Steal 17 million and pay a $250K fine?
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