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Palladino family of Massachusetts convicted in $10 million Ponzi scheme

Palladino family in court

Steven Palladino (left), with wife Lori and son Gregory at their sentencing. (Photo by Jessica Rinaldi for Boston Globe.)

Steven Palladino, his wife, Lori, and their son, Gregory, were all sentenced for running a Ponzi scheme, taking about $10 million from dozens of friends and neighbors.

Steven Palladino, the ringleader, blew the money on gambling trips to Las Vegas, expensive cars and rent  for his mistress. When his lawyer claimed Palladino was sorry, victims in the courtroom scoffed. One victim called Palladino a sociopath.

Ponzi scam brings 10-year sentence, on BostonGlobe.com.

Story suggested by a Lovefraud reader.

 



2 Comments on "Palladino family of Massachusetts convicted in $10 million Ponzi scheme"

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  1. Jan7 says:

    The sentence for these sociopaths are way to low…they should be life in prison without parole. Sadly this type of scheme is every where and these sociopath are so masterful at convincing people to hand over their money. The tv show “American Greed” highlighted a ponzi scheme such as this one and what I remember most is the FBI agent talking about the case said that had he not been trained to know how they manipulated these individuals are he too would have been sucked into the scam while he was interviewing the suspect because the suspect was so incredibly charming.

    Some years ago a American friend of ours opened a business in Costa Rica…At the time Costa Rica had a large population of American and other World country Expat’s living in Costa Rica because of the cheap retirement living cost and business opportunities.

    When we went to visit our friend he was telling us about these two bothers who were investing peoples money and guaranteeing a 20% return on their investment…I told our friend that it was to good to be true, that their was no way for them to guarantee a specific return amount and something did not seem right with this investment opportunity. Years later the news broke that these two bothers had been running the second largest ponzi scheme ever in history only behind Bernie Madoff’s scam. It is estimated that they stole somewhere between $1 to $3 billion. Most of this money has never been found.

    Here is part of an article on the brothers: “At the center of the story is a ton of money, maybe $1 billion, that no one can find, and a bespectacled investment guru named Luis Enrique Villalobos, who has become an international fugitive.
    Villalobos, 63, and his brother, Oswaldo, ran The Brothers Fund out of an office in a shopping mall in San Jose, the Costa Rican capital. For 20 years, they paid up to 3.5 percent interest in cash every month to some 6,400 American retirees who didn’t ask too many questions….”

    Lesson learned follow your gut it always tells you the truth!



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  2. Redwald says:

    I used to live in the Boston area. But the only Palladino I remember from there was Pixie, whose name was also seen frequently on the pages of the Boston Globe. (Oddly enough, we now have a dog named Pixie, though it wasn’t named after her.) She was once reputed to have punched Ted Kennedy in the stomach because she was so pissed off at him. (Mrs. Palladino that is, not our dog.) You had to admire the lady for her guts. Quite unlike this other crowd of ripoff artists, who have brought shame upon the name of Palladino. What a pity!



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