Paul A. Rinfret, Ponzi Scheme, New York 2019

Paul A. Rinfret, a 70-year-old former Wall Street trader, has pleaded guilty to participating in a massive Ponzi scheme that swindled approximately $19 million from unsuspecting investors, according to a press release from the United States Attorney for the Southern District of New York.

The scheme, which ran from at least 2016 through 2019, was centered around an entity called Plandome Partners L.P., where Rinfret offered investors the opportunity to purchase limited partnership interests with promises of high returns.

However, Rinfret lied to investors about his past returns, claiming he had developed a proprietary trading algorithm that would generate significant profits. In reality, he used most of the invested funds to purchase luxury goods and high-end vacation rentals for himself and his family members.

Rinfret also generated fake account statements and brokerage reports to convince investors that their money was growing. The scheme ultimately collapsed when Rinfret's victims began to demand their returns.

Rinfret has pleaded guilty to one count of wire fraud and one count of securities fraud, which carry a maximum sentence of 20 years in prison each. He is scheduled to be sentenced by Judge Gregory H. Woods on February 10, 2020.

The investigation was led by the Office's Securities and Commodities Fraud Task Force, with assistance from Homeland Security Investigations and the New York City Police Department.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, praised the outstanding work of the investigators and thanked the agencies involved in the case.

Rinfret's scheme is a stark reminder of the dangers of investment scams and the importance of conducting thorough due diligence before investing in any opportunity.

Rinfret, a resident of Manhasset, New York, faces a lengthy prison sentence for his crimes, which demonstrate a callous disregard for the financial security of his victims.

Source: https://www.justice.gov/usao-sdny/pr/former-wall-street-trader-pleads-guilty-running-ponzi-scheme