Tuesday, January 29, 2008

More on Di Fonzo "THE PONZI MASTER"

People are still getting indicted and the case is still open.

Guy Scarpelli, a former salesman for the defunct ponzi scheme known as DFJ Italia, was charged in early October 2004 with conspiracy to commit mail fraud and wire fraud, structuring cash transactions to avoid reporting requirements, and tax evasion, according to a statement from the US Attorney's office in Los Angeles, which notes that Scarpelli agreed to enter a guilty plea on this charges.
DFJ Italia was run between 1996 and 2000 and offered investors not only returns of some 24%, but also a colorful story. Based in Newport Beach, the company claimed to be associated with an Italian family with royal lineage and diplomatic immunity--a family which had access to a 700-year-old fortune invested around the world in "bridge financing" activities. Behind DFJ reportedly lurked a mysterious individual called "the Don," presumably Luigi DiFonzo, identified in press reports as the mastermind of the DFJ Italia scheme, who reportedly committed suicide in August, 2000.
The US Attorney's statement says that DFJ Italia raised some $45 million from investors, most of which apparently went to the personal benefit of DiFonzo. Scarpelli allegedly received between $60,000 and $70,000 of commissions per month in 1998. He maintained a bank account in the name of an antiques business to channel deposits and ponzi payments of investor money.
Two other participants in the DFJ Italia scheme have reportedly pleaded guilty to fraud and other charges. Richard Glenn Dunham, an accountant from Orange County, California, pleaded guilty to mail fraud and tax violations for his involvement in generating DFJ's financial information. A New York CPA, Stephen A. Ceparano, pleaded guilty in a federal case in New York to charges of conspiracy and fraud for aiding in the production of DFJ's false financial information.