Monday, November 2, 2009
Update: California Ponzi Schemer Pleads Guilty In $40 Million Case
Kenneth Kenitzer, 66, of Pleasanton, California a former principal of Equity Investment Management and Trading, Inc., was officially charged with running a $40 million Ponzi scheme together with co-conspirator, Anthony Vassallo, 30, of Folsom, California. Kenitzer, who is expected to plead guilty to money laundering and mail fraud, is reportedly cooperating with the authorities on the case. According to prosecutors, at least 150 investors lost as much as $40 million as a result of the scheme. Kenitzer and Vassallo reportedly promised investors that they could earn at least 36 percent return by using a proprietary trading program. Kenitzer and Vassallo targeted potential investors in the local Mormon community in the Folsom area. Kenitzer faces up to 30 years in prison.
Read FraudTalk's earlier post on this story here.
Read the DOJ's announcement here.