Who is Nevin Shapiro?
Nevin Shapiro, 42, of Miami Beach, Florida, plead guilty to one count of securities fraud and one count of money-laundering in September 2010. Prosecutors alleged Shaprio for running a $930 million Ponzi scheme which was estimated to cost investors $82.7 million. Shaporo was ordered by U.S. District Judge Susan D. Wigenton to make restitution in the amount of $82.6 million. Shapiro said he “never set out to rip people off,” it just turned into fraud when his real estate business collapsed.[1. fbi.gov CEO of Capitol Investments USA, Inc. Sentenced to 20 Years in Prison for $930 Million Ponzi Scheme Based on Phony Grocery Business]
Shapiro once lived in a $6.1 million, 6,432-square foot mansion on North Bay Road in Miami Beach along with his $1.6 million Riviera yacht. [1. sports.yahoo.com Who is Nevin Shapiro?] Currently, Nevin Shapiro sentenced 20 years in federal prison [1. bop.gov Players got gifts from ex-Miami booster] next to murderers and other convicts since April 2010.
University of Miami booster
Nevin Shapiro is also known as an University of Miami booster. Shapiro said he gave money, cars, yacht trips, jewelry, televisions and other gifts to a list of players including Vince Wilfork, Jon Beason, Antrel Rolle, Devin Hester, Willis McGahee and the late Sean Taylor of the Washington Redskins. [1. espn.go.com Players got gifts from ex-Miami booster]
His admission of eviscerating the NCAA rulebook with either the clear or tacit knowledge of so many Miami leaders created one of the biggest scandals in college sports history.
Nevin Shapiro Ponzi scheme
In 2000, Nevin Shapiro created Capitol Investments USA, Inc., a grocery business which he claimed brought expiring food at wholesale price and shipped them overseas to sell them at higher price. This scheme was to attract investors. From 2005 to 2009 investors believed they were investing in Shaprio’s grocery business but Shaprio admitted that his business at Capital had virtually no income in that time. The FBI estimated Shapiro solicit approximately $930 million from investors and used $35 million in investors funds for personal use. [1. bi.gov CEO of Capitol Investments USA, Inc. Sentenced to 20 Years in Prison for $930 Million Ponzi Scheme Based on Phony Grocery Business]
By 2009, the business was starting to crack and federal prosecutors alleged in court documents, in 2005, it “had virtually no income-generating business” and “in fact, Capitol conducted virtually no legitimate business transactions.” Old investors had to be paid with new investors, a classic Ponzi scheme. During that time Shapiro’s investors who sensed trouble openly asked him if he was a Bernie Madoff-type.
“Nevin Shapiro used other people’s money to live a fantasy life built on false promises to unsuspecting victims,” U.S. Attorney Paul J. Fishman said.
Elements of the case were brought by the interagency Financial Fraud Enforcement Task Force established by President Obama in November 2009.
Williams, of Naples, Fla., the founder of local retail-center development firm Williams Realty Group, entered his plea before a federal judge on Tuesday. The charge of subscribing to a false tax return carries a maximum penalty of three years in prison and a fine of $250,000. Sentencing is set for Jan. 12.
Williams, 63, admitted to failing to report $6.4 million in income from 2004 through 2007 that he earned from Miami Beach, Fla.-based Capitol Investments USA.
Its CEO, Nevin Shapiro, a year ago pleaded guilty to money laundering and securities fraud in what authorities called a $900 million Ponzi scheme. He was sentenced in June to 20 years in prison. Read more, Former Hoosier pleads guilty in Florida Ponzi case
The man who brought more individuals than anyone else to invest in Nevin Shapiro’s $930 million Ponzi scheme admitted today to failing to report millions of the more than $12 million in related commissions he received to the Internal Revenue Service (IRS), United States Attorney for the District of New Jersey Paul J Fishman announced.
Sydney Jack Williams, 63, of Naples, Fla ., pleaded guilty before United States District Judge Susan D Wigenton to an information charging him with one count of subscribing to a false tax return. During today’s proceeding, Williams admitted he recruited more than 60 individuals to invest in Capitol Investments USA Inc ., which Shapiro, 42, of Miami Beach, Fla ., has admitted was a fraud. Read more, Largest Recruiter of Investors to $930 Million Ponzi Scheme Admits Lying to the IRS About Millions in Related Income
Former 2 Live Crew frontman Luther Campbell says a former University of Miami booster Nevin Shapiro “slandered and defamed” him in a Yahoo! Sports report.
In a lawsuit filed Tuesday in Miami-Dade Circuit Court, Campbell seeks more than $15,000 in damages from Nevin Shapiro, an imprisoned Ponzi scheme architect. Read more, Luther Campbell suing Nevin Shapiro
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