Nevin Shapiro and Capitol Investments USA, Inc. – Alleged Ponzi Scheme
Meyer Wilson has launched an investigation into an alleged $900 millionPonzi scheme operated by Nevin Shapiro through his company Capitol Investments USA, Inc. (“Capitol”). According to the complaint filed by the United States Securities and Exchange Commission (“SEC”), from February 2003 to November 2009 Shapiro sold promissory notes to investors promising returns of 10 to 26 percent.
Shapiro apparently solicited investments using a number of sales agents. These individuals, who may be registered brokers at financial firms, were paid over $13 million in commissions for their role in soliciting investments. Shapiro raised millions from at least 60 investors in Florida, Indiana, and New Jersey.
Investors were told that Capitol was a grocery diverter and food broker. The company was supposed to purchase lower-priced groceries from vendors in one part of the county and resell them for a profit to buyers in another part of the country where the prices were higher. However, the money raised from investors allegedly funded Shapiro’s lavish lifestyle, including a $5 million home in Miami Beach, and other business ventures, including a sports management business.
The investment fraud attorneys at Meyer & Associates are investigating whether any financial institutions, including brokerage firms and banks, may have participated in or facilitated the alleged fraud and whether they may be held liable for losses suffered by investors.
If you are a victim of the alleged investment fraud of Nevin K. Shapiro or Capitol Investments USA, Inc. contact theinvestment fraud lawyers at Meyer Wilson.