Monday, May 10, 2010
New York Man Accused Of Running $2 Million Ponzi Scheme
Jay M. Hoffman, 58, of East Meadow, New York, was arraigned last week on 22 counts of grand larceny and 2 counts of operating a scheme to defraud in connection with an alleged Ponzi-type investment fraud scheme that defrauded investors, including many family members and friends, out of at least $2 million. Hoffman plead not guilty to the charges. Prosecutors allege that through his company, Security Income Planners, Hoffman promised investors returns of up to 12 percent per year, but instead kept investor funds for himself or to make interest payments to earlier investors. Hoffman's scheme reportedly lasted some 20 years and involved more than 40 victims.