News

Nevin Shapiro To Be Sentenced In $880M Ponzi Scheme

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.

Sound off in our comments section below…

(TM and Copyright 2011 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)