Investors Say Rabbi Was a Ponzi Man
BROOKLYN (CN) - An Orthodox rabbi and his son bilked investors of $5 million in a Ponzi scheme, a class action claims in Federal Court.
Lead plaintiff Zap Cellular Inc. claims it gave more than $2 million to Rabbi David Cynnamon, his son Aaron Cynnamon and the rabbi's company, DC Realty, based on their promises of 10 to 17 percent return on investment, plus the principal.
"The plaintiff's money was in fact never used to invest in real estate," the lawsuit states. "Instead the defendants deposited the money into private bank accounts, which they then used for their own personal gain."
The company claims investors were not repaid, or were only partially paid from new investors' money, making it a "classic" Ponzi scheme.
Zap et al. want their money back, and damages for racketeering, fraud, aiding and abetting and conversion.
They are represented by Stephen Dickerman with Dickerman, Khan & Shpigel.