Defendant’s Hearing Set in $880 Million Fraud

A Florida man accused of running an $880 million Ponzi scheme that authorities said paid for lavish spending sprees and sports philanthropy may have reached a deal with federal prosecutors, The Associated Press reported.

Nevin Shapiro is due in court Sept. 15 for a plea agreement hearing on money laundering and securities fraud charges. Mr. Shapiro’s lawyer did not return a message Monday, and the United States attorney’s office declined to comment to the news agency.

Prosecutors said Mr. Shapiro, a 41-year-old Miami Beach resident, 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.

Instead, prosecutors say, Mr. Shapiro left at least 60 investors in Florida, Indiana and New Jersey with about $80 million in losses after the scheme collapsed.

Go to Article from The Associated Press via The New York Times ยป