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Defendant’s Greed Leaves Trail of Destruction, Leaving Investors with Devastating Losses
Laurie Schneider, a resident of Oceanside, New York, has pleaded guilty to wire fraud, a crime that has left her victims financially ruined. According to the court filings, Schneider used two shell corporations to operate a $6.9 million Ponzi scheme, stealing money from unsuspecting investors who were promised high returns on their investments.
Schneider’s scheme began in September 2006, when she started accepting money from individuals seeking to earn profits on investments in overseas machinery and equipment deals and real estate on Long Island. She operated a shell corporation called Janitorial Close-Out City Corp. (‘Janitorial Close-Out’), which she used to lure investors with false promises of high returns on investments of up to 60 percent.
Schneider also operated a shell company incorporated as Eager Beaver Realty LLC (‘Eager Beaver’), which she touted as able to purchase and sell real property on Long Island that was in foreclosure proceedings or otherwise available to Eager Beaver at significantly low prices. In reality, Eager Beaver earned no profits, and Schneider was operating a Ponzi scheme, paying returns to early investors using money that she fraudulently obtained.
United States Attorney Loretta E. Lynch stated, ‘Laurie Schneider played the part of a successful entrepreneur, willing to help others invest in equipment and machinery deals as well as Long Island real estate. In reality, she was a con artist, using lies and false assurances to bilk unsuspecting investors out of millions of dollars.’
Assistant Director-in-Charge George Venizelos of the FBI added, ‘By creating two different fraudulent shell companies and falsifying her connections with foreign companies to potential investors, Schneider was able to swindle millions out of innocent investors promising big returns for their backing. Today’s guilty plea also promises a big return for Schneider’s criminal actions — a million-dollar judgment and a possible sentence of 20 years in prison.’
When sentenced, Schneider faces up to 20 years in prison. As part of her plea agreement with the government, Schneider agreed to a $1 million money judgment payable to the United States. The guilty plea was announced by United States Attorney Loretta E. Lynch and George Venizelos, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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