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Thursday, June 20, 2024 | Back issues
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Ponzi Scheme Allegedly Took $11 Million

MANHATTAN (CN) - Federal prosecutors say Hayim Regensberg took $11 million in a Ponzi scheme. Prosecutors say the 43-year-old Manhattan resident told suckers he had information about foreign IPOs that would earn 5 to 15 percent returns with little or no risk - but guess what?

In another scheme, Regensberg said he could loan suckers' money to traders to use as collateral for leveraged investments that would bring them up to 18 percent returns a year.

Regensberg also forged bank documents to show he had $9 million when, in fact, only $9,000 was left, prosecutors say. They say he blew the money on himself, lost a lot in dumb options trades, and doled out a little to investors to keep the Ponzi scheme going, until it collapsed in September 2007.

Regensberg faces 20 years in prison on each of four counts of securities fraud and wire fraud. He also has been charged criminally.

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