Thaindian News

By Ranjan Bhaduri
Miami, Apr 22, (THAINDIAN NEWS) The US SEC has slapped fraud charges on a Florida businessman of running an investment scam worth $900 million. The money of the defrauded investors was used to give donations to a regional university, as it has been reported. The businessman in question is Nevin K. Shapiro. If the charges turn out to be true, then he will have to face 20 years imprisonment and a fine worth $5 million. Apart from these, he will be subjected to civil fraud charges by SEC. He surrendered on Wednesday, to the authorities and is in prison. He signed a bond worth $10 million. He allegedly misled the investors about securities he sold to them. The man also made a false claim that the securities will be used to fund his wholesale grocery distribution business and yield high returns. In reality he used the money in donations, leading a lavish life and operating ponzi scheme. The revelation has sent a shock waves in the media.

As per the complaint filed by the SEC, Nevin K. Shapiro used around $35 million of the fund obtained from the investors for personal purposes. He also used $150,000 from the funds to give donations to the athletic program of Miami University. He also received accolades from the University for the Donation and it rechristened a student athlete lounge. He became known as a philanthropic after donating to the University.

The University of Miami’s sports department has not made any statement after the exposure of his fraud and his subsequent surrender to the police. The investors are grilling him to find out how he planned the entire fraud scheme.