Fla. man sentenced to 24 years in prison for defrauding investors of $44M in Ponzi scheme
By APSaturday, October 17, 2009
Fla. man sentenced to prison for $44M Ponzi scheme
WEST PALM BEACH, Fla. — A Florida businessman has been sentenced to more than 24 years in prison for running a $44 million Ponzi scheme that defrauded dozens of investors.
A federal judge also sentenced Michael Riolo on Friday to three years of supervised release.
The 38-year-old pleaded guilty in July to five counts of mail fraud. Each charge carried a maximum 20-year prison sentence.
Federal prosecutors say Riolo told more than 80 clients that he was investing their money in the foreign currency market. Instead, authorities say the money went to Riolo’s personal use and to pay earlier investors.
Riolo’s attorney, Bart Houston, said Saturday that the sentence was “outrageous” and more than what prosecutors had recommended. He says Riolo plans to appeal.
