Search
Most Recent
AdSurfDaily Agape agent American Integrity Aronson asset sales Attorney av bar reg baker bank bank of america Bankruptcy baumann bermudez black diamond blackwell bridge loan bull cattle CD celebrity cftc charity china China Voice church cityfund claims claims process clawback commission commodities commodity pool computer program congress Crown Forex currency death sentence denver diamond bar disgorgement Distribution Dodd-Frank donnan Dreier dunhill e-bullion elderly E-M Management SEC england Fairfield family FBI FDIC Fees female ponzi scheme financial advisor fine FINRA football forex fraud fufta fugitive Full Tilt gift card guilty plea GunnAllen hawaii Heckscher HSBC india invers forex janvey John Morgan JP Morgan kansas ken bell kenzie las vegas lawsuit lawyer libya Lifland machado Madoff Marian Morgan metro dream homes mets milberg millers a game Morgan European Holdings mortgage multiple schemes NCAA Net Winner new jersey notes objection Oxford Patrick Kiley paul burks PermaPave Pettengill Petters Picard poker Ponzi ponzi scheme ponzi scheme database ponzi scheme list Prime Rate profitable sunrise prosun pta puerto rico Rakoff real estate receiver receivership regulation relief defendants religion remission repeat offender restitution Rothstein RRA sec sentencing simmons sipa sipc snelling standing stanford stettin subpoena td bank telexfree treasury bonds treasury strip Tremont Trevor Cook UBS UFTA uga utah venture advisors Wachovia wilpon wire fraud woman zeek zeek rewards zeekler zeekrewards
Social
Recent SEC Releases
« Miami Law Firm To Pay $5 Million To Settle Ponzi Lawsuit | Main | Zeek Victims Face Sept 5th Deadline To File Claims »
Thursday
Sep052013

Alleged Ponzi Schemer Faces New Loan-Sharking Charges

A Massachusetts man already accused of orchestrating a multi-million dollar Ponzi scheme with his wife faced new charges of loan-sharking after he was arrested at a gas station with thousands of dollars stuffed in his pockets after he allegedly sought to collect a 40% return on an investment previously made by his company.  Steven Palladino, 57, was arraigned on a single count of usury after prosecutors alleged he contacted a woman demanding the repayment of a loan he previously made through his business that featured an interest rate wice the maximum allowed under Massachusetts law. As Palladino was already out on bail on more than one dozen charges, Judge Michael Cayne granted a request by prosecutors to impose an additional $25,000 cash bail. 

According to authorities, Palladino and his wife, Lori, owned and operated Viking Financial Group ("Viking") along with their 28-year old son.  Potential investors were told that Viking profited by making loans that carried exorbitant interest rates.  However, Viking made very few loans, and of these loans, many were made in violation of a state statute prohibiting loan interest rates exceeding 20%.  Indeed, three of the loans extended in 2007 and 2008 carried interest rates exceeding 60% - resulting in three charges of usury.

The Palladinos attempted to evade suspicion by falsifying company books and records to make it appear as if Viking was making legitimate loans.  However, in reality, investor funds were used primarily to sustain a life of luxury for the couple that included Bahamas trips, rent for Steven Palladino's mistress, and hundreds of thousands of dollars in gambling losses.  Additionally, nearly $400,000 in investor funds were used to satisfy a condition of Steven Palladino's probation stemming from a 2007 conviction for, ironically enough, defrauding an elderly relative.  

Palladino and his wife were indicted in March on numerous charges including four counts of larceny over $250, three counts of making false entries in corporate books, and three counts of usury, commonly referred to as loan sharking.  Due to his lengthy criminal record that featured more than 24 prior larceny convictions, Steven Palladino was charged as a 'common and notorious thief'.

The new charges allege that, even after his arrest in March, Palladino had been recently contacting a Massachusetts woman to seek a $30,000 payment for a $25,000 loan she received from Viking back in March.  While Massachusetts law prohibits the making of any loan carrying more than a 20% annual interest rate, the payment demanded by Palladino would have equated to a 40% annual return - double the rate allowed under law.  Palladino was subsequently apprehended at a local gas station with nearly $5,000 in cash in his pockets and driving a $100,000+ Mercedes.   

Palladino is also expected to face charges for allegedly transferring the title of several vehicles he owned solely or jointly with his wife to that of his wife's name alone.

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (4)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    Football is actually 1 of the largest sports in America. It has a important following.
  • Response
    Response: my review here
    Neat Site, Stick to the beneficial job. Thank you so much.
  • Response
    see here for the top 1960 chevrolet corvette for sale available
  • Response
    ... קורס אנגלית - רבים בסביבת העבודה שלי בוודאי השתתפו בקורס אנגלית עסקית מתמקדת בהתמקצעות באוצר מילים הנבת הנקרא, זמנים וכתיבה נכונה. אז אם מעניין אתכם להירשם לקורס של לימוד צרפתית, לימוד איטלקי... Alleged Ponzi Schemer Faces New Loan-Sharking Charges ... ...

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Post:
 
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>