Wednesday, January 21, 2009

FBI Investigating Another Alleged Ponzi Scheme In South Florida

Michael J. Riolo, 37, of Boca Raton, Florida, is being investigated by the FBI following a civil law suit filed by investors claiming he ran a Ponzi-type investment fraud scheme. Losses could be as high as $50 million, according to one burned investor. Riolo's companies, LaSalle International Clearing Corp. and Sterling Wentworth Currency Group Inc., based in Coral Springs, Florida, purportedly invested in foreign currency arbitrage transactions. We note that Riolo had reportedly been arrested in 2002, by the DEA in connection with illegal Internet trafficking of the "date rape" drug GHB. However, the case was not pursued.

Read the story here and here.

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