Man sentenced to
17 years for Ponzi scheme
A man described as the "architect" of a Ponzi scheme that defrauded $66 million from nearly 5,000 investors was sentenced to 17 years and six months in federal prison.
Paul Lazzaro pleaded guilty earlier to mail fraud, wire fraud, money laundering and defrauding the U.S. government in connection with a "Cayman Islands Investment" scheme that promised 8 percent weekly returns in 13 weeks for a minimum investment of $1,000 cash.
The scheme operated for just more than a year, beginning in the summer of 1997, before it was shut down because investors were complaining they were not getting paid.
Visiting U.S. District Judge Manuel Real said yesterday that Lazzaro came up with the investment scheme and Montez Ottley carried it out.
Real sentenced Ottley, of Laie, on Monday to 19 years and seven months in federal prison for her role in the scheme.
Lazzaro is jointly liable with Ottley to repay the $66 million lost. Prosecutors have recovered about $200,000 cash from Lazzaro, as well as a new Mercedes and Jaguar.
