PRINTER REPAIR SHOP RUNS $28M. PONZI-SCHEME

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PRINTER REPAIR SHOP RUNS $28M. PONZI-SCHEME

 user 2009-11-03 at 11:42:33 am Views: 64
  • #22862
    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.