Heartless Ponzi Scheme, Feds Say

MANHATTAN (CN) - A woman bilked New York City's Filipino community in a million-dollar Ponzi scheme she ran through her companies, Lady of Lourdes, and K&K Nannies, federal prosecutors say. Razel Canedo allegedly promised annual returns of up to 50 percent, and claimed she used the money to bring Filipino nurses and nannies to the United States.

It was just a Ponzi scheme based on worthless "promissory notes" she gave her victims, and she paid off a few early suckers with money from later victims, prosecutors said. She faces up to 40 years in prison if convicted of mail fraud and wire fraud.

Canedo, 41, also used the names Razel Torres and Razel Agravante. She was arrested in Atlantic City, after taking more than $1 million from dozens of victims, the U.S. Attorney's Office said.

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