David Joseph Varrone, Ponzi Scheme, Florida 2021

A Broward County couple has been charged in federal court with operating an alleged Ponzi scheme linked to their company, The Credit Engineers Inc.

David Joseph Varrone, 56, and his wife Sherry Varrone of Weston, Florida, were arraigned Tuesday and Wednesday, respectively, on charges of conspiring to commit wire fraud.

According to allegations, from 2018 through 2021, the Varrones offered individuals with good credit a short-term 'Credit Leasing' investment program tied to a purported hedge fund that would yield a guaranteed return on investments plus fully repay the loans within 36 months or less.

However, there was no hedge fund and victims' funds never were invested. Instead, the proceeds were used to enrich the Varrones and to pay back earlier victims – a classic Ponzi scheme.

The scheme funneled over $6.4 million of misappropriated victims' funds into the Varrones' accounts. Additionally, David Varrone fraudulently applied for and received approximately $650,000 in C.A.R.E.S. Act, Economic Injury Disaster Relief Loans from the U.S. Small Business Administration (SBA).

If convicted, David Varrone faces a maximum penalty of 30 years in prison, while Sherry Varrone faces a maximum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines along with other mitigating, aggravating, and statutory factors.

Source: https://www.justice.gov/usao-sdfl/pr/broward-county-couple-charged-alleged-ponzi-scheme