A Brooklyn Madoff-wannabe was arrested and charged today by US Attorney Benton Campbell with operating a 30-year old Ponzi scheme and defrauding investors of some $45 million.
Not missing a beat and probably not wanting to wait a day over those 30 years, the always-on-top-of-things SEC also filed civil charges against Barry today. (That “fraud college” actually doesn’t sound like such a bad idea.)
US Attorney Benton Campbell said in a statement that Barry lured 800 investors into his Leverage Group fund (also, SEC, anything that goes by the name “leverage” –as in Bear Stearns’ High-Grade Structured Credit Enhanced Leveraged Fund- should be a red flag), which claimed to be investing in stock options.
And of course, investors included retirees and senior citizens, at least one charitable trust and a religious organisation.
Barry started his Bay Ridge operations back in 1978 and used the misappropriated millions to acquire interests in at least 60 different real estate ventures, including an office building in Brooklyn, New York and property located in Sullivan and St. Lawrence Counties, New York.