Russo Sentenced in Ponzi Scheme
Frank J. Russo: Sentenced in Ponzi Scheme
I had written about this real estate ponzi scheme before, but Frank Russo has now been sentenced.
According to the SEC Press Release:
"The Commission announced today that on February 25, 2008, Frank J. Russo, a defendant in a previously-filed Commission enforcement action, was sentenced in U.S. District Court for the District of Massachusetts to 18 years in prison to be followed by 3 years of supervised release.Russo pleaded guilty to charges of investment adviser fraud and mail fraud in a hearing just prior to his sentencing.
The criminal charges relate to the investment fraud allegations in the Commission's civil action.
In addition to his jail sentence, Russo was ordered to pay $20 million in restitution to defrauded investors and to pay a $500,000 fine.
The Court ordered forfeiture of Russo's residence and other assets. Russo entered a guilty plea to charges that from 1982 through 2006, he misrepresented to investors that they could expect "above average" positive returns, and that their investments would be safe.
In fact, according to prosecutors, he did not invest his victims' money as promised, lost more than $20 million in investor funds, and in order to conceal the losses and his misrepresentations, and to induce victims into further investments, Russo generated false account statements that reflected inflated balances and gains that did not exist."
What do you think? 18 Years about right?
Here are some related posts.
Frank Russo and the Amended Complaint, which adds relief defendants.
