A Long Island, N.Y., fund manager has been indicted for securities, wire and mail fraud in connection with a $17 million Ponzi scheme he allegedly used to buy an expensive home and vehicle, according to the U.S. Attorney for the Eastern District of New York.
James M. Peister of St. James, N.Y., is charged with raising more than $17 million between January 2000 and June 2009 from at least 74 investors in connection with an investment fund that he managed. He had assured those investors that their money would be invested safely in a variety of securities, including stocks, futures and fixed-income instruments, the U.S. Attorney says.
Instead of investing the money as he had promised, Peister misappropriated it to buy an expensive estate in St. James and a Hummer luxury vehicle. To avoid detection and continue the scheme, Peister sent phony account statements to investors that falsely showed that their funds were invested and performing well, the indictment says.
“As alleged, Peister preyed upon innocent investors to construct his house of cards. But that house collapsed under the weight of his lies,” says U.S. Attorney Loretta E. Lynch. “Peister promised investors that he would invest their money safely and responsibly. Instead, he stole their money to finance his personal life style. Now, he will be held to account for his crimes."