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.