Man who cheated 300 people with Ponzi scheme pleads guilty
Northern, WI 02/04/2013 (gdpwatch) – $80 Million Ponzi scheme in California- Man pleaded guilty as per federal prosecutors in California, a man is pleading guilty to operating a Ponzi scheme which took around $80 million from 300 various investors; most of these investors met this man at a church.
U.S. Attorney Benjamin Wagner in Sacramento stated that, Anthony Vassallo, 33, of Folsom, California and others ran a equity investment and trading Inc which was using a computer program designed by Vasallo to time the stock market to earn risk free 36 percent of profit per year.
Vasallo cached his victims in almost every walk of life and this list even included his friends and family as described by Wagner in his statement. Wagner stated that this conviction can act as a small relief to the victims of Vasallo and this also acts a message to anyone who takes advantage of others trust.
Prosecutors said that, Vasallo stopped trading in 2009 because of loss of all the capital invested by people and he misguided people not to withdraw money in order to get more returns.
His working partner Kenneth Kenitzer, 66, of Pleasanton, California, already pleaded guilty concerned to this case and waiting for sentencing, as described in the report.
These two were sued by the US Securities and Exchange Commission in 2009. The prosecutor said, a receiver is appointed in this case to recover assets for the investors.
Bruce Locke, Vassallo’s attorney, did not respond to the comment.
The case is U.S. v Vassallo, 09-90, U.S. District Court, Eastern District of California (Sacramento).