Richard Shusterman, Wire Fraud, Maryland 2013
A brazen and complex Ponzi scheme that defrauded investors of more than $275 million has been uncovered in Maryland.
Richard Shusterman, 50, of Highland Beach, Florida, and Jonathan E. Rosenberg, 44, of West Orange, New Jersey, were indicted on charges of conspiracy and wire fraud in connection with the scheme.
According to the indictment, Shusterman was a shareholder and president of International Portfolio, Inc. (IPI), while Rosenberg operated Account Receivable Services, LLC (ARS).
Between December 2006 and June 2008, IPI paid over $25 million to purchase more than $4.1 billion in medical accounts receivable, comprising over 3,872,514 past due patient accounts.
The conspirators made fraudulent representations and omissions regarding purchase prices, collection results, and resale values of IPI medical debt portfolios to persuade investors to invest in those portfolios.
The indictment alleges that Shusterman, Rosenberg, and others negotiated and agreed upon two different purchase prices for each IPI debt portfolio that hedge funds and other investors financed on behalf of ARS.
The defendants allegedly characterized the kickbacks as a refund for any unqualified accounts in the portfolios.
The indictment was returned on September 4, 2013, and unsealed upon the arrest of the defendants.
Guilty pleas by Robert Feldman, 65, and Douglas A. Kuber, 53, were also unsealed today.
Feldman and Kuber pleaded guilty to conspiracy to commit wire fraud on September 3, 2013, and October 11, 2012, respectively.
US Attorney for the District of Maryland Rod J. Rosenstein announced the indictment and guilty pleas.
Key Facts
- State: Maryland
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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