Tuesday, March 10, 2009
Gift Card Ponzi Scheme Uncovered In New York Area
Craig Ginsberg, 48, of Hicksville, New York, is accused of operating a Ponzi-type scam involving gift cards for Toys R Us, Target, Nordstrom, Visa, American Express and Best Buy. According to prosecutors on Long Island, Ginsberg started offering gift cards at a 50 percent discount in 2006. Early purchasers got what they paid for, but later ones - as many as 63 victims, may have lost as much as $4.1 million when the scam collapsed last year. Ginsberg is alleged to have spent the money on a lavish lifestyle. He is being charged today with grand larceny and scheming to defraud and could face up to 15 years in prison if convicted. Ginsberg, through his attorney, has denied the charges.
Watch the video here.