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Ponzi Schemes to be Renamed “Pizzolato” Schemes
Matthew B. Pizzolato, 26, of Tickfaw, Louisiana, was charged December 2, 2009 by a federal grand jury sitting in New Orleans in a 64-count indictment for operating an investment “Ponzi” Scheme, announced U.S. Attorney Jim Letten.
Specifically, Pizzolato was charged with 52 counts of mail fraud ( counts 1-52 ), two counts of wire fraud ( counts 53, 54 ), seven counts of money laundering ( counts 55-61 ), one count of securities fraud ( count 62 ), one count of witness tampering ( count 63 ), and one count of obstruction of justice ( count 64 ) in violation of federal law.
According to today’s indictment, since 2005, MATTHEW B. PIZZOLATO, was affiliated with and/or operated and/or owned Gulf Region Guaranty, Inc. ( Gulf Region Guaranty ) and its affiliated companies Acadian Guaranty Group, LLC; Allegiance Financial, LLC; Annuity Presets, LLC; Annuity Recovery Services, LLC; Anova Marketing Systems, LLC; Anova Marketing Systems, LLC; Anytime Fitness of Sulphur, LLC; Cornerstone Wealth Management, LLC; Global Assured Financial, Inc.; Green Pelican Group, Inc.; Gulf South Guaranty, Inc.; Gulf States Guaranty, LLC; GRG Holdings, LLC; GRG I, LLC; GRG II, LLC; Matt P, LLC; National Insurance Advisors, LLC; Pelican Guaranty Group, Inc. ( Pelican Guaranty ); and Spectrum Lending Group, LLC. PIZZOLATO maintained offices in Hammond, Covington, Lake Charles, Baton Rouge, and also conducted business in the New Orleans metropolitan area.
Pizzolato is charged with having purchased hundreds of thousands of dollars worth of luxury cars using investor money including a BMW 750LI, a Mercedes Benz S430V, a Range Rover Sport, and a Chevrolet Corvette. Additionally, the indictment charges that Pizzolato used investor money to build a new half-million dollar home in Ponchatoula, Louisiana and to purchase a $35,000.00 engagement ring.
According to the indictment, during the time period of 2005 through the date of the indictment, Pizzolato, obtained approximately $19.5 Million from approximately 160 investors and spent nearly all of the money.
Seniors and Retirees were prime targets
According to the allegations, during this time period, Pizzolato operated an investment “Ponzi” scheme targeting older investors, specifically retirees. Pizzolato lured his potential victims through advertisements in the local daily newspapers in New Orleans, Baton Rouge and Hammond by promising rates of returns that were higher than market rates for CDs or U.S. Treasury Bills.
FBI Special Agent in Charge David Welker stated: “It is unconscionable that in this stressful economy senior citizens would be targeted and defrauded of their life savings. We have an obligation to aggressively investigate crimes against those citizens who are most vulnerable. The FBI and our law enforcement partners will continue to aggressively pursue those who target our most vulnerable citizens.”
If convicted, Pizzolato faces up to twenty ( 20 ) years imprisonment for each count of mail fraud, wire fraud, securities fraud, and witness tampering; and up to ten ( 10 ) years imprisonment for each of the money laundering and obstruction of justice charges. He also faces fines of up to $16 million and five (5) years of supervised release after he is released from prison.
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