Indictment in Alleged $4 Million Ponzi Scheme Affecting 25 Investors
Laurie Schneider, of Oceanside, has been indicted in an alleged
Ponzi scheme that took in over 25 investors and caused at least $4 million in losses.
If she is convicted, Schneider could be facing 20 years in prison for
each count of wire fraud associated with the alleged Ponzi scheme.
According to the indictment, Schneider lured investors in with promises of high returns on an investment with her Janitorial Close-Out City Corp., which she claimed invested in industrial equipment companies in China. She allegedly told investors that they could make returns as high as 60% in the deal, with a minimum of 15%. These figures were based on the false claim that she could buy the equipment at wholesale prices through a business contact.
Unfortunately, it has been charged that Schneider was actually running a Ponzi scheme instead, in which she paid newer investors with money from previous investors in order to keep up the appearance of legitimacy. Prosecutors allege that Schneider used made-up numbers for the high returns she offered to investors, and that none of the money paid out actually came from reselling the industrial equipment or making investments.
There have been some allegations of additional investment scams that were related to the alleged Ponzi scheme, but no further information is yet available.
If you have been the victim of a Ponzi scheme, stockbroker fraud, or another type of investment fraud, don't hesitate to contact one of our experienced securities fraud attorneystoday for help. We represent clients nationwide in stockbroker mediation, arbitration, and litigation, and we look forward to helping you recover your losses.