The US District Court for the District of Massachusetts ordered a default judgment against Veritasiti Corporation d/b/a MediaData Corporation, an entity controlled by Frank J. Russo, forermly of Wakefield, Massachusetts, in the final chapter of Russo's nearly $12 million Ponzi scheme. Veritasiti was ordered to pay disgorgement of $11.9 million plus prejudgment interest of $2.2 million for a total of $14.1 million. Russo was charged with raising at least $15 million from 160 investors to invest in two limited partnerships he controlled but diverted at least $11.5 million of the funds for his own benefit. In February, Russo was sentenced to 18 years in prison after pleading guilty to investment adviser fraud and mail fraud. He was also ordered to pay $20 million in restitution and a $500,000 fine. The fraud reportedly occurred between 1982 and 2006.Read the original SEC Litigation Release here.
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