Nevin Shapiro arrested in Ponzi Scheme 0
Nevin Shapiro has been charged in a Ponzi scheme and has been arrested in New Jersey. Nevin is the president as well as the founder of Capitol Investments USA which is located in Miami Beach. The charge is that the Ponzi scheme has defrauded investors of around $900 million. This charge has been laid at the door of Nevin Shapiro by the SEC (Securities and Exchange Commission) which said that Nevin Shapiro was guilty of selling securities that he called risk-free and which had promised to pay almost 26% interest to the investors who would be funding the grocery business of Capitol. The grocery business essentially buys groceries in one region and then sells them at a premium in regions where the prices afford profits.
The spotlight is clearly on Ponzi schemes right now given the fact that Scott Rothstein had swindled people to the extent of $1.2 billion. It may be remembered that Bernard Madoff had made off with around $65 billion in such a Ponzi scheme and is now serving 150 years in prison.
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