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Man Sentenced for Alleged Ponzi Scheme

Posted on Sep 04, 2011

A former investment advisor has been sentenced to more than 4 years in jail for an alleged Ponzi scheme, which is said to have defrauded investors out of more than $2.4 million. He will also serve about 3 years supervised release and pay about $2.5 million in restitution.

Carlo Chiaese, 38, was accused of using investor money to fund a lavish lifestyle. Mr. Chiaese owned CGC Advisors and pleaded guilty in federal court last March.

Authorities allege that Mr. Chiaese lured investors in by emphasizing his investment experience and promising to put their money in conservative but traditional securities. The investors who lost money with Mr. Chiaese included about 850 members of the International Longshoreman's Association Union. They claim to have lost about $1.7 million from their pension fund in this suspected Ponzi scheme, while Mr.
Chiaese was leasing expensive cars, staying in luxury hotels, and shopping at high-end department stores.

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