Ex-Investment Fund Manager Pleads Guilty to $17M Ponzi Scheme
In a shocking turn of events, James M. Peister, the former manager of Northstar International Group Inc., pleaded guilty to securities fraud for operating a massive $17.9 million Ponzi scheme in New York.
According to sources, Peister deceived investors about the stability and performance of their investments in a fund that he founded and managed, preventing them from seeking to redeem their interests.
In a plea agreement with the government, Peister agreed to pay $9,657,218.65 in restitution to the victims of his fraud and consented to the forfeiture of $17.9 million, which includes his residence in St. James, New York, and his Hummer sport utility vehicle.
Peister’s scheme collapsed in 2008 when he could no longer keep up with demands for redemptions from nervous investors, leaving dozens of investors with significant financial losses.
Sentencing is set to take place, with Peister facing up to 20 years in prison and a fine of up to $5,000,000.
Loretta E. Lynch, United States Attorney for the Eastern District of New York, praised the efforts of the FBI and other agencies that worked tirelessly to bring Peister to justice.
The investigation was led by the Federal Bureau of Investigation, New York Field Office, with the assistance of the United States Securities Exchange Commission and the United States Commodity Futures Trading Commission.
Peister’s guilty plea marks the end of a nearly decade-long scheme that saw him fleece dozens of investors and use their money to fund his own lavish lifestyle.
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Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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