April 21st, 2010
03:08 PM ET

SEC charges Miami schemer in massive Ponzi

The SEC and the U.S. Attorney's office in New Jersey on Wednesday charged a Miami Beach-based businessman with allegedly running a Ponzi scheme that sucked in close to $1 billion.

The Securities and Exchange Commission and U.S. District Attorney Paul Fishman filed fraud charges in New Jersey against Nevin K. Shapiro, founder and president of Capitol Investments USA.

Shapiro is accused of fraudulently offering risk-free annual returns as high as 26% to investors in his grocery diverting operation, a type of business where low-cost groceries are purchased in one region and sold for a higher price elsewhere.

"[Shapiro] used his prominence and prestige to gain investors' trust in funding Capitol's grocery-diverting business, but behind their backs he diverted their money to enrich himself," said Eric Bustillo, director of the SEC's Miami regional office.

Investigators from the U.S. Attorney's office said more than 60 investors, many of them in New Jersey, sent Shapiro more than $880 million, incurring losses of at least $80 million.

The SEC said that Shapiro's "lavish" lifestyle included a $5 million house in tony Miami Beach and a $1 million boat, as well as "luxury cars, expensive clothes, high-stakes gambling and season tickets to premium sporting events."

Read full CNNMoney.com story

soundoff (2 Responses)
  1. Dax

    If you have suffered investment losses as a result of the fraud or negligence of your financial professional, the securities attorneys of The White Law Group may be able to help. For more information, visit http://www.whitesecuritieslaw.com.

    December 25, 2010 at 8:01 pm | Report abuse |
  2. Denis

    Hey Gina, it sounds like you have some great ideas. The imtorpant part now is to start taking the necessary steps to make them more than just an idea. If you need any help, just let me know.

    April 22, 2012 at 1:02 pm | Report abuse |