Michigan Advisor Accused of Defrauding School System and Township in Ponzi Scheme
Last week, a criminal Complaint was filed against Dante DeMiro for his
role in an alleged
Ponzi scheme, which the FBI says defrauded both the Mona Shores Public Schools system
and Comstock Township out of millions of dollars, according to WOODTV.com.
The victims believed DeMiro, an investment advisor with Munivest in Southfield,
Michigan, was investing their money in federally insured certificates
Instead, the FBI accuses the advisor of using "the intended investment funds for his own benefit, to make payments to other investors in the same scheme and provide money to a local jewelry store." The FBI further accuses DeMiro of using a portion of the school system's investment funds to pay returns to the township.
Comstock Township invested $1.75 million with DeMiro. Mona Shores invested $3.48 million (out of a planned $3.7 million) with DeMiro and Munivest, according to the September 17 WOODTV.com article. It is unclear how much of the investment funds are missing. The investigation is ongoing. DeMiro has yet to
comment on the charges.
The FBI has included a warning to investors regarding Ponzi schemes on its website. For more information about Ponzi schemes, including red flags to keep in mind, click here.