Michigan investment adviser Dante DeMiro has been sentenced to 10 years in prison and ordered to pay nearly $13 million in restitution for the operation of a Ponzi scheme that defrauded a Michigan school district and several local governments out of millions of dollars.
A criminal complaint was filed against DeMiro in September of 2010, as the result of an FBI investigation into his activities. A Grand Jury indicted him a month later, and he pled guilty to five counts of bank and wire fraud on April 19, 2011.
According to the September complaint, DeMiro, through his firm Munivest, operated a Ponzi scheme that defrauded the Mona Shores school district out of approximately $3.5 million, which the district raised through the passage of a 2009 bond. Instead of investing the money in secure, federally insured CDs as he had promised, DeMiro used the funds for his own benefit and to make Ponzi payments to other investors, including Lapeer County and Comstock Township.
According to the Associated Press, DeMiro's victims lost more than $7 million.