MANHATTAN (CN) – Westchester County accountants Laurence M. Brown Ronald Mangini were charged Thursday with bilking a dozen people for $2 million in a Ponzi scheme. The men were principals of Armonk-based Marshall Granger & Co.
The U.S. Attorney’s office also charged Brown with securities fraud, wire fraud and money laundering. Prosecutors say Brown promised to invest the money in a company called Infinity Reserves Tennessee, a putative natural gas pipeline, but swiped most of it, and made $136,550 in Ponzi payments.
The SEC charged Brown, 63, of Katonah, and Mangini, 61, of Mt. Kisco, with securities fraud. The U.S. Attorney’s Office charged only Brown.
He faces up to 50 years in prison if convicted of all charges, and fines of twice the amount of harm he did, the U.S. Attorney’s Office said in announcing his arrest.