Man Admits To $20 Million Ponzi Scheme In New Jersey
TRENTON, N.J. (AP) — A central New Jersey man has admitted running a $20 million Ponzi scheme.
Louis Spina faces up to 20 years in prison for wire fraud when he's sentenced in February.
Spina pleaded guilty in federal court in Trenton on Thursday. The U.S. attorney's office says the 57-year-old Colts Neck resident convinced 36 investors to invest $20 million based on promises they would earn nine percent to 14 percent monthly. Spina also maintained a residence in Miami.
Spina allegedly put only $9.5 million into a trading account and used the remaining $10.5 million to make interest payments to investors and return some portions of their principals, as well as pay for his personal expenses. He also allegedly made a $400,000 donation to an unnamed private university.
Investors lost about $12.7 million.
(© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)
You may also be interested in these stories: