NEWARK, N.J. (CBSNewYork/AP) — A Florida man faces sentencing Tuesday after pleading guilty to running a multistate Ponzi scheme that prosecutors say left investors with up to $100 million in losses.
Nevin Shapiro, once known for his sports philanthropy, pleaded guilty in September in New Jersey federal court to one count of securities fraud and one count of money laundering. The plea was part of an agreement that still has him facing up to 17 years in prison.
Prosecutors said Shapiro, of Miami Beach, used a Florida-based company called Capitol Investments, USA, Inc., to raise nearly $900 million from investors who thought they were buying into a wholesale grocery distribution business.
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