White Plains, NY
News
New Payoff To Thousands Of Victims Of Madoff Ponzi Scheme Totals $695 Million New Payoff To Thousands Of Victims Of Madoff Ponzi Scheme Totals $695 Million
New Payoff To Thousands Of Victims Of Madoff Ponzi Scheme Totals $695 Million Thousands of Bernie Madoff’s Ponzi Scheme victims will soon see some relief, as the Department of Justice begins the latest distribution of nearly $700 million. This week, the Madoff Victim Fund, which was established by the DOJ, began distributing $695.4 million in funds that were forfeited to the government in connection to Madoff’s scheme. The money will be distributed to more than 27,000 of Madoff’s victims, many of whom call the area home. The latest distribution marks the third in a series of payments from the Madoff Victim Fund as part of Madoff’s fraud, which totaled more than $4 bi…

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by Zak Failla
Mount Pleasant, NY
News
Westchester Developer Admits To Ponzi Scheme, Could Face Decades In Prison Westchester Developer Admits To Ponzi Scheme, Could Face Decades In Prison
Westchester Developer Admits To Ponzi Scheme, Could Face Decades In Prison A real estate developer has admitted to operating a years-long Ponzi scheme that included properties in Westchester. Michael D’Alessio, 53, has pleaded guilty to one count of committing wire fraud and one count of concealing assets from a bankruptcy court. He faces up to 20 years in prison and hundreds of thousands of dollars in fines when he is sentenced on March 22 next year. The elaborate scheme involved defrauding investors of luxury real estate developments in Manhattan, the Hamptons, Westchester and other locales. D'Alessio is the former president and CEO of real estate deve…

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by Zak Failla
Armonk, NY
News
Westchester Native, Ousted WFAN Radio Host Craig Carton Found Guilty Of Ponzi Scheme Westchester Native, Ousted WFAN Radio Host Craig Carton Found Guilty Of Ponzi Scheme
Westchester Native, Ousted Wfan Radio Host Craig Carton Found Guilty Of Ponzi Scheme After just a weeklong trial, former WFAN sports talk personality and Westchester native Craig Carton has been found guilty on all counts in his fraud trial. The 49-year-old Carton, who grew up in New Rochelle, was found guilty of wire fraud, securities fraud and conspiracy for his role in a Ponzi scheme, which was aimed with an eye toward clearing gambling debt. The scheme was tied to a fake ticket scam. The trial kicked off last week on Oct. 31. Carton now faces up to 45 years in prison following the conviction. He remains released on bail. “The government is dead wrong. The government ha…

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by Zak Failla
Armonk, NY
News
Westchester Native, Ousted WFAN Radio Host Craig Carton's Trial Underway Westchester Native, Ousted WFAN Radio Host Craig Carton's Trial Underway
Westchester Native, Ousted Wfan Radio Host Craig Carton's Trial Underway Westchester native and former WFAN sports talk personality Craig Carton’s fraud trial has started this week. The 48-year-old Carton, who grew up in New Rochelle, has been charged with wire fraud, securities fraud and conspiracy for his role in an alleged Ponzi scheme, which was allegedly aimed with an eye toward clearing gambling debt. The scheme was tied to a fake ticket scam. In his opening statement, Assistant U.S. Attorney Brendan Quigley said that Carton diverted the money to pay for gambling debt and personal expenses. Carton’s lawyers have reportedly said he is the victim of an alleg…

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by Zak Failla
Norwalk, CT
News
Investment Fund Co-Founder From Rowayton Charged In $20 Million Fraud Scheme Investment Fund Co-Founder From Rowayton Charged In $20 Million Fraud Scheme
Investment Fund Co-Founder From Rowayton Charged In $20 Million Fraud Scheme The former co-founder of a multi-million dollar hedge fund is facing charges claiming that he lied to his investors and misappropriated nearly $20 million as part of a Ponzi scheme. Jason Rhodes of Fairfield County was arrested on Tuesday morning on conspiracy, securities fraud, wire fraud, and investment adviser fraud charges.  The charges stem from his participation in an elaborate scheme to defraud investors in the hedge fund and using investor funds to repay earlier investors in a Ponzi-like manner. Beginning in November 2013, Rhodes, a resident of the village of Rowayton in Norwalk, a…

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by Zak Failla
Mount Pleasant, NY
News
Northern Westchester Hedge Fund Manager Sentenced, Ordered To Pay $22M For Ponzi Scheme Northern Westchester Hedge Fund Manager Sentenced, Ordered To Pay $22M For Ponzi Scheme
Northern Westchester Hedge Fund Manager Sentenced, Ordered To Pay $22M For Ponzi Scheme A former hedge fund manager from Northern Westchester will spend nearly a decade behind bars after defrauding 45 investors out of more than $22 million through an elaborate Ponzi scheme that allowed him to live a lavish lifestyle. Michael Scronic of Pound Ridge, the former manager of the Scronic Macro Fund has been sentenced to 96 months in prison, Geoffrey Berman, the United States Attorney for the Southern District of New York, announced on Thursday. Scronic was also sentenced to three years of supervised release and must pay $22,026,427 in restitution to his victims. Scronic, 46, admitte…

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by Zak Failla
Fairfield, CT
News
Ex-CEO, 33, Fined $9 Million, Sentenced To Prison For Digital Currency Ponzi Scheme Ex-CEO, 33, Fined $9 Million, Sentenced To Prison For Digital Currency Ponzi Scheme
Ex-ceo, 33, Fined $9 Million, Sentenced To Prison For Digital Currency Ponzi Scheme The former CEO of a virtual currency company is heading to prison and must pay more than $9 million in restitution for his role in his companies’ purported generation and sale of virtual currency that devolved into a Ponzi Scheme. Josh Garza, 33, formerly of Somers, Connecticut, was sentenced in Hartford District Court to a term of 21 months in prison, followed by three years of supervised release, the first six months of which he will have to spend in home confinement for his role in the multi-million dollar scheme. According to court documents and statements made in court, “virtual curren…

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by Zak Failla
White Plains, NY
Sports
'I’ll Be Back,' Westchester Native, Ousted Radio Host Craig Carton Says In New Interview 'I’ll Be Back,' Westchester Native, Ousted Radio Host Craig Carton Says In New Interview
'I’ll Be Back,' Westchester Native, Ousted Radio Host Craig Carton Says In New Interview Westchester native and WFAN sports talk personality Craig Carton vehemently denied that he was engaged in an alleged Ponzi scheme tied to a fake ticket scam during his first radio appearance nearly a year after he was charged in federal court. The 48-year-old Carton, who grew up in New Rochelle, has been charged with wire fraud, securities fraud and conspiracy for his role in the scheme, which was allegedly aimed with an eye toward clearing gambling debt. His tiral is scheduled to begin on Oct. 29. Carton co-hosted the “Boomer and Carton” morning show for a decade alongside retired NFL quar…

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by Zak Failla
White Plains, NY
Real Estate
White Plains Real Estate Developer Charged With Operating Ponzi Scheme White Plains Real Estate Developer Charged With Operating Ponzi Scheme
White Plains Real Estate Developer Charged With Operating Ponzi Scheme A real estate developer is facing up to two decades behind bars for operating an alleged years-long Ponzi scheme that included properties in the Hudson Valley. Michael D’Alessio, 52, has been charged with committing wire fraud in connection to his elaborate scheme to defraud investors in luxury real estate developments in Manhattan, the Hamptons, Westchester and elsewhere. D'Alessio is the former president and CEO of real estate development firm Michael Paul Enterprises in White Plains. A career real estate developer and contractor, D’Alessio was the CEO of an investment and development fi…

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by Zak Failla
Fairfield, CT
News
Fairfield County Man, 49, Sentenced For $6M Ponzi Scheme Fairfield County Man, 49, Sentenced For $6M Ponzi Scheme
Fairfield County Man, 49, Sentenced For $6M Ponzi Scheme A 49-year-old Wilton man was sentenced to more than three years in prison Tuesday for using hedge-fund money for his own personal use as part of a $6 million-plus Ponzi scheme. Steven Simmons was sentenced to 37 months in prison by U.S. District Judge Kimba M. Wood. Simmons, who solicited over $6 million in investments for a hedge fund, misappropriated nearly $2 million of these funds for his own use and that of a co-conspirator, said Geoffrey Berman, the United States Attorney for the Southern District of New York. Other investor funds solicited by Simmons were used by the owner of the He…

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by Joe Lombardi
Mount Pleasant, NY
News
Northern Westchester Hedge Fund Manager Pleads Guilty To $22M Ponzi Scheme Northern Westchester Hedge Fund Manager Pleads Guilty To $22M Ponzi Scheme
Northern Westchester Hedge Fund Manager Pleads Guilty To $22M Ponzi Scheme A former hedge fund manager from Northern Westchester pleaded guilty Thursday to defrauding 45 investors, many of them friends and neighbors, of $22 million in a Ponzi scheme. Michael Scronic of Pound Ridge, 46, pleaded guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison. He is scheduled to be sentenced by Judge Cathy Seibel on July 9.  “Michael Scronic lied about the performance of his investment fund, telling investors that his returns were as high as 13 percent," U.S. Attorney for the Southern District of New York Geoffrey S. Berman said. …

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by Joe Lombardi