Man Operated Ponzi Scheme While in Prison, including in Florida
According to a press release from the United States Department of Justice (DOJ), Seth Adam Depiano, a 43-year-old man who is originally from California, is facing charges for allegedly operating a Ponzi scheme while incarcerated in federal prison, including while at a facility in Florida. Mr. Depiano—who was already in prison for fraud—is accused of conducting an additional $10 million Ponzi scheme while behind bars. Here, our Florida Ponzi scheme attorney discusses the allegations in more detail.
Allegations: Federal Prisoner Pulled Off $10 Million Ponzi Scheme
Seth Adam Depiano is not a stranger to investment fraud allegations. He was previously sentenced to federal prison in 2018 for his role in a $24 million real estate Ponzi scheme. Mr. Depiano has now been indicted again—this time for allegedly managing a $10 million real estate Ponzi scheme while incarcerated. It is a stunning allegation. The Ponzi scheme was reportedly conducted by Mr. Depiano from 2021 to 2022 in multiple federal prisons across the country, including a facility in Florida. As alleged by the DOJ, Mr. Depiano allegedly used contraband phones, contraband computers, and fake identities to pose as a real estate broker in order to sell properties he did not own. He and his co-conspirators are accused of defrauding victims in California and other states.
Understanding the Characteristics of a Ponzi Scheme
A Ponzi scheme is a type of fraud that lures investors in with big promises of profits, but instead of making legitimate gains shuffles around funds and pays them off with the investment of more recent investors. They are one of the most common examples of large-scale investment fraud. While Ponzi schemes take many different forms, they tend to share some common defining elements:
- Promises of High Returns with Little Risk: Ponzi schemes typically entice investors by promising high financial returns or dividends not available through traditional investments. These returns are unusually consistent and cover a short period. Often, investors are told that they can make a high return with little or no risk.
- Little or No Genuine Revenue: The fundamental mechanism driving a Ponzi scheme is not business profits but the influx of new investments. In other words, there is little or no legitimate underlying investment enterprise earning profits. The money from new investors is used directly to repay earlier ones.
- Destined to Collapse: A Ponzi scheme cannot last. It is inherently unstable. A Ponzi scheme can only stay afloat as long as there is new investment coming into the system. Once that new investment dries up, the entire scheme can fall part—and often very quickly.
Consult With Our Miami Ponzi Scheme Attorney Today
At Carlson & Associates, P.A., our Miami, FL Ponzi scheme lawyer is committed to fighting for the rights and the interests of investors. If you suffered considerable investment losses in a Ponzi scheme, we are here to help. Contact us today for your completely confidential, no obligation initial consultation. From our Miami office, we fight for investor rights throughout the region.
Source:
justice.gov/usao-edca/pr/former-fresno-county-resident-charged-managing-10-million-nationwide-real-estate-fraud