In Miami, a money manager from Boca Raton, Florida attended his sentencing hearing in federal court and received 24 years in prison. Federal prosecutors allege that Michael Riolo, of Boca Raton, operated a "Ponzi" scheme that defrauded his investors out of 44 million dollars. He purported to his investors that he was investing their money by trading in foreign currencies. Riola was charged with wire fraud, mail fraud, securities fraud and conspiracy. His Miami criminal lawyer was present at the sentencing hearing.
The federal government alleges that Riolo committed the fraud by using two companies, Sterling Wentworth Currency Group and La Salle International Clearing Corp. Riolo handled accounts for more than 80 investors who committed 44 million dollars from 1999 to 2008. Rather than using the funds to invest in foreign currencies, such as the yen and euro, he used the money to fund his lavish lifestyle.
Like all the "Ponzi" schemes and schemes to defraud that we have been reading about over the course of several months, he filed falsified monthly reports on the profits made from his investments and used new monies to pay older investors the gains that he promised. Acting U.S. Attorney for the Southern District of Florida told reporters, "During these tough economic times, it is more important than ever that those who lie and steal from the investing public be held accountable for their misconduct."
South Florida has been hit hard by numerous "Ponzi" schemes and other organized schemes to defraud. Palm Beach, Florida is still suffering the consequences of Bernie Madoff's 65 billion dollar fraud. Madoff was sentenced to 150 years in federal prison. Another example of a "Ponzi" scheme that hit the west coast of Florida was the fraud committed by Art Nadal. He is awaiting trail for 360 million dollar fraud that lasted for ten years.
South Florida and Miami fraud defense lawyers have had their case load skyrocket since the economic downturn which began in 2007. Despite the existence of "Ponzi" schemes for decades, greed overwhelms investors' common sense. Their greed many times costs them their homes and life savings. It's like the old adage goes, "if it is to good to be true, that it is probably is."
Florida Man Sentenced to 24 Years for Ponzi Scheme, Reuters, October 19, 2009.
