Steven Palladino, his wife Lori, and son Gregory have pleaded guilty to their involvement in a Massachusetts Ponzi scam that cost at least victims over $10 million, much of which can never be recovered. Defrauded investors included friends, acquaintances, and a veteran’s group.
In Suffolk Superior Court this week, Palladino pleaded guilty to criminal charges that implicated him as the lead player in the financial scheme, which he ran through Viking Financial Group. Lori and Gregory also entered their guilty pleas to charges related to the fraud.
Prosecutors claim the Palladinos promised high returns from high-interest, low-risk loans. The family used investors’ money to pay for a fancy lifestyle, including jewelry and expensive cars. Palladino also reportedly used some of the money for his mistress.
Now, Palladino must serve 10 to 12 years behind bars, in addition to probation, and he will have to pay restitution. Lori will serve two years in the house of correction and also pay restitution. A similar sentence was issued for Gregory, although he is also on probation for 5-years. Viking must pay restitution and serve five years probation.
Unfortunately, family and friends can fall easy targets to Ponzi scammers seeking to make money off of others’ money and trust. This is why it is so important that even if you personally know the financial representative you should still do your due diligence to make sure that they are properly registered as a professional and they don’t have a history of claims and lawsuits against them.
Contact our Massachusetts Ponzi fraud lawyers today.
West Roxbury family pleads guilty to multimillion-dollar Ponzi scheme, Boston.com, January 21, 2014
Investors Bilked In Alleged West Roxbury Ponzi Scheme Appear In Court, CBS Boston, January 14, 2014
More Blog Posts:
SEC Goes After Alleged Ponzi Scammers, Stockbroker Fraud Blog, November 13, 2013
Two Investors’ Securities Fraud Lawsuit Against SEC Over Stanford Ponzi Scam is Dismissed, Stockbroker Fraud Blog, August 16, 2013
US Supreme Court Hears Oral Argument on the Impact of SLUSA on the Stanford Ponzi Scams, Institutional Investor Securities Blog, October 17, 2013