WOODMERE, N.Y. (CBSNewYork/AP) – A Long Island man charged with operating a Ponzi scheme that duped real estate investors of $50 million has been released on bail.
Gershon Barkany was arrested by FBI agents on March 28. He’s accused of spending the investors’ money for his personal benefit.
According to authorities, Barkany ran the alleged scheme from January 2009 to December 2010.
Barkany’s lawyer, Bruce Barket, said Barkany was released on bail on Tuesday. He said Barkany is restricted to his home and has surrendered his passport.
Barkany allegedly duped the investors by claiming he would invest the money “risk-free” in properties in New York City and Atlantic City and then sell them at a profit.
Barket said Barkany has been cooperating with the investors to help them recover as much of the money as possible.
(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 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 This material may not be published, broadcast, rewritten, or redistributed.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.)