Family members indicted over $7M 'Ponzi scheme' claims
TRENTON -- A Bergen County man was indicted Friday along with his wife, son and five others for for allegedly defrauding 26 investors in a series of multi-million dollar scams, according to New Jersey's attorney general.
Authorities claim George Bussanich Sr. and his family conspired with the others to steal more than $7 million through two schemes involving the sale of bogus investments, using the proceeds to buy high-end cars and other luxuries.
Elie Honig, the director of the state Division of Criminal Justice, said Friday that Bussanich Sr. and his son, George Jr., and wife Wilma defrauded elderly investors "in classic Ponzi-scheme fashion."
Authorities say the father and son masterminded the scheme, in which they allegedly sold unregistered investment notes for a bogus surgical center that was actual just a holding company, making dividend payments to investors out of the principal funds to create the illusion the company was profitable.
Read more: http://www.nj.com/news/index.ssf/2017/03/family_members_indicted_over_7m_ponzi_scheme_claim.html