A Tampa man was convicted in connection with a $53 million Ponzi scam just two years after being released from state prison for a prior conviction in a Ponzi scheme. Michael Greenberg built a $53 million Ponzi scheme based on investments from his parents and father-in-law and fraudulently obtained loans. Greenberg has been charged with wire fraud for the scheme in which he defrauded more than 30 investors of $15 million. He also is alleged to have stolen his parents' identities to obtain loans from various financial institutions in large sums that he had no intention of repaying.
Greenberg's late grandfather founded Starkey Road Auto Parts and amassed a family fortune. Greenberg's scheme involved incorporating an automobile business, Pure Class, in 1998. Greenberg used a proxy to obtain his auto dealer's license so he could avoid be disqualified for his prior criminal conviction. Greenberg allegedly made false representations to secure funds from people, businesses and banks. He maintained the deception by paying "dividends" to earlier investors from new investments and loans.
Greenberg also used his parents' identities and their commercial real estate holdings as the basis to secure a loan by forging their signatures and falsifying tax returns in their names. Goldberg allegedly used his parents' identities to defraud two separate financial institutions of $7.5 million. According to authorities, Greenberg also used his wife's identity to secure a $1.5 million loan guaranteed by the U.S. Small Business Administration. His father-in-law also invested $1.3 million in Goldberg's bogus company.
Greenberg was previously sentenced to 3 years and 10 months for wire fraud and money laundering in a similar scheme. Wire fraud is a federal crime, which involves the use of the internet, email, television, telephone lines or fax machines to carry out fraudulent activity, explained Florida white collar crime lawyer John Musca. Wire fraud constitutes a federal crime because it involves wire communications across state lines. "Anyone under investigation in Florida for wire fraud needs to seek immediate legal counsel," said Musca. "Depending on the circumstances, a conviction for wire fraud can result in a sentence of up to 30 years in federal prison and up to a million dollars in fines."
Musca Law has over 100 years of combined legal experience with convenient offices located across the State of Florida. Our Florida criminal defense team will aggressively defend your rights on the State and Federal level. The prosecution is looking to punish you to the fullest extent of the law. You need a knowledgeable attorney to watch out for you. Contact the criminal lawyers at Musca Law for a free, comprehensive review of your case.
