PRINTER REPAIR SHOP RUNS $28Mil PONZI-SCHEME

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PRINTER REPAIR SHOP RUNS $28Mil PONZI-SCHEME

 user 2009-11-03 at 11:41:50 am Views: 89
  • #22861

    http://www.suntimes.com/news/24-7/1854344,businessman-matthew-scott-ponzi-scheme-102909.article
    PRINTER REPAIR SHOP RUNS $28M. PONZI-SCHEME 
    FBI charges Elmhurst man with Ponzi scheme ,Elmhurst businessman accused of defrauding investors out of $28 million
    A businessman from Elmhurst was charged in a $28 million ponzi scheme today that allegedly defrauded at least 60 investors over nine years.Matthew Scott, 50, was charged in a “criminal information’’ filed today. That usually means the defendant will later plead guilty in the case.Scott was the president and owner of the Northlake-based Gelsco, Inc. — a printer repair company. From 2000 through this year, he is accused of falsely telling investors his business was buying used high-speed printers and reselling them at a substantial profit. Instead, he was simply using investors’ money to payoff individuals who earlier entrusted him in the venture, charges say.Federal prosecutors say Scott never even purchased or financed printers. He allegedly presented investors with phony purchase orders, invoices and promissory notes to make it appear if he was operating legitimately.

    Over the nine years of the scheme, Scott needed to lure new investors so their funding could pay off the old ones, prosecutors say. He lost at least $4.5 million of investors’ money in the scheme, according to charges.If convicted, Scott faces up to 20 years in prison and could face fines totaling twice the loss of any victim or twice his alleged gain — whichever is greater.