WAFB Channel 9, Baton Rouge, LA |LA businessman indicted for alleged Ponzi scheme

LA businessman indicted for alleged Ponzi scheme

By Keitha Nelson - bio | email

NEW ORLEANS, LA (WAFB) - A Louisiana businessman was indicted Friday for what authorities believe was a Ponzi scheme that began in 2005 and ended just a few weeks ago.

Matthew Pizzolato's indictment included mail fraud, wire fraud, money laundering, securities fraud, witness tampering and obstruction of justice. Pizzolato is accused of defrauding investors, many of them seniors, out of about $19.5 million.

U.S. Attorney Jim Letten says Pizzolato racked up on a lot of luxury items like jewelry, furniture and cruises with the millions he got from investors.

"He allegedly offered his former employee a $20,000 pay off, to destroy records," said Letten.

Pizzolato reportedly advertised investment services under company names such as Gulf Region Guaranty Inc. Authorities say he allegedly promised investors their money was protected against losses, but that was not the case.

"We were getting calls from investors," said Rhonda Reeves with the State Office of Financial Institutions. "I can't talk about the particulars of the case. But things just didn't sound right. The more questions we asked, the more things didn't sound right."

If convicted, Pizzolato faces up to 16-million dollars in fines and some serious jail time.

Prosecutors will try to seize assets used in any crimes he is convicted of.

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