Businessman Charged With Ponzi Scheme, Targeted Catholics
Thursday, January 08, 2009
BUFFALO, N.Y. — An 82-year-old businessman was charged Thursday with running a Ponzi scheme that took in at least $17 million from a clientele gleaned largely through ads in Catholic newspapers.
Richard Piccoli of suburban Buffalo declined to comment after appearing in federal court on a criminal complaint charging him with mail fraud. He was ordered to return Tuesday for arraignment.
He could face up to 20 years in prison and a $250,000 fine if convicted.
The U.S. Securities and Exchange Commission, meanwhile, moved to freeze the assets of Piccoli and his 33-year-old company, Gen-See Capital Corp.
Investigators said Piccoli guaranteed annual returns of 7.1 to 8.3 percent on what he said were investments in discounted real estate mortgages. But rather than invest new clients' money, Piccoli used it to pay earlier investors — while directing about $600,000 to himself and his children, according to court documents.
Authorities have yet to determine how much money might be missing, Assistant U.S. Attorney Gretchen Wylegala said.
The criminal complaint said Piccoli appeared to deliberately target clergy, cemetery funds and other church entities by limiting his advertising to Catholic publications. ...
