Florida Man to Plead Guilty to $880 Million Grocery-Business Ponzi Scheme

[marmar]

By David Voreacos


Aug. 23 (Bloomberg) -- Nevin Shapiro, the former owner of Capitol Investments USA Inc. accused of leading an $880 million Ponzi scheme, is to plead guilty, court papers showed.

Shapiro, 41, of Miami Beach, Florida, is charged with defrauding more than 60 investors in his bogus wholesale grocery distribution business. He is accused of using new investors’ money to pay earlier ones, as well as to fund his lavish lifestyle.

Prosecutors said Shapiro stole $35 million to pay illegal gambling debts and make payments on a $5.3 million house, a $1.5 million yacht, a Mercedes-Benz and seats to Miami Heat basketball games. He also bought a pair of diamond-studded handcuffs to give to a prominent professional athlete and donated $150,000 to the University of Miami for an athletic lounge, prosecutors said.

Shapiro, who pleaded not guilty on July 22, is scheduled for a “plea agreement hearing” on Sept. 15 in federal court in Newark, New Jersey, where he was indicted, according to an Aug. 20 court docket entry. The entry doesn’t specify what charges Shapiro will admit.

Rebekah Carmichael, a spokeswoman for U.S. Attorney Paul Fishman, declined to comment. Shapiro’s attorney, Maria E. Perez, didn’t immediately return a call seeking comment. ..........(more)

The complete piece is at: http://noir.bloomberg.com/apps/news?pid=20601108&sid=a9NTS8XEdLJA

[indepat]

1. And the beat goes on

:P