Connect with us

Headlines

Jewelry Wholesaler Pleads Guilty in $200M Ponzi Scheme

He faces up to 20 years in prison.

mm

Published

on

A jewelry wholesaler has pleaded guilty to wire fraud for running a two-year, $200 million Ponzi scheme based on false statements to investors about inflated returns for nonexistent wholesale jewelry deals.

As part of his plea, Gregory Altieri also admitted to committing securities fraud in connection with the scheme.

When sentenced, Altieri faces up to 20 years in prison, according to a press release from the U.S. Department of Justice.  The proceeding took place before U.S, District Judge Brian M. Cogan at the federal courthouse in Brooklyn.

“With today’s guilty plea, Altieri is held accountable for duping dozens of investors, including retirees living off their pensions,” said Seth D. DuCharme, acting U.S. attorney for the Eastern District of New York. “The defendant’s lies have caught up to him and he will now face the consequences of his fraudulent scheme.”

According to the press release:

Beginning in August 2017, Altieri solicited between $75 million to $85 million in investments in his entity, LNA Associates, from over 80 investors located in Queens, Staten Island, Long Island and elsewhere.  Altieri told investors that their money would be used to purchase jewelry at “closeout” prices, which would then be resold at a high profit yielding returns on those investments of between 30 and 70 percent in a matter of months.  While Altieri initially purchased some jewelry with investors’ money, since approximately May 2018, he used money from new investors to pay earlier investors, representing to the latter group that they were receiving returns on their investments.  These purported “returns” were used by Altieri to convince the earlier investors to keep their money with LNA Associates by “rolling over” their funds into new investments based on false promises to use this money to purchase additional jewelry.  By January 2020, when Altieri stopped making payments to investors, he owed them approximately $200 million based on the falsely inflated promised returns.

Advertisement

SPONSORED VIDEO

Wilkerson Testimonials | Zadok Master Jewelers

Stick to the Program — And Watch Your Sales Grow

When Zadok Master Jewelers in Houston, Texas, decided to move to a new location (they’d been in the same one for the 45 years they’d been in business), they called Wilkerson to run a moving sale. The results, says seventh-generation jeweler Jonathan Zadok, were “off the charts” in terms of traffic and sales. Why? They took Wilkerson’s advice and stuck to the company’s marketing program, which included sign twirlers — something Jonathan Zadok had never used before. He says a number of very wealthy customers came in because of them. “They said, ‘I loved your sign twirlers and here’s my credit card for $20,000.’ There’s no way we could have done that on our own,” says Zadok. “Without Wilkerson, the sale never, ever would have come close to what it did.”

Promoted Headlines

Most Popular