Thursday, March 5, 2009

Illinois Man Charged With Running $4.7 Million Ponzi Scheme

Anthony A. Demasi, 34, of Chicago, Illinois, was charged last week with operating a Ponzi-type scheme that defrauded some 27 investors out of at least $4.7 million. Demasi was charged with three counts of wire fraud and two counts of commodities fraud. According to prosecutors, Demasi, through his company, Tsunami Capital LLC, raided the funds over a 4 1/2 year period, ostensibly to invest in commodities trading pools and promised returns as high as 174 percent. Instead, prosecutors contend that Demasi spent the funds on financing two nightclubs, paying gambling debts and other personal expenses.

Read the story here and here.

Read the DOJ announcement here.

Read the CFTC's complaint here.

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