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SEC Charges Prominent Miami Beach Businessman in $900 Million Ponzi Scheme

Wednesday, April 21, 2010 - 1:18 PM
From the Security and Exchange Commission
The SEC alleges that Nevin K. Shapiro, the founder and president of Capitol Investments USA, Inc., sold investors securities that he claimed would fund Capitol’s grocery diverting business. Shapiro told investors that the securities were risk-free with rates of return as high as 26 percent annually.
This CNN article has a few more details.

Ponzi schemes are still out there. It was just over a year ago when the SEC shut down the Caribbean-based Millennium Bank for running a CD ponzi scheme (see post).
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,634
1. Wednesday, April 21, 2010 - 4:54 PM
Ponzi schemes use leverage to keep them afloat.  Shift money around so no one notices it and it always flows towards the person who hatched the idea at the beginning.
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,952