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
Recent SEC Releases
« Vermont Ski Resort Accused Of $350 Million "Ponzi-like" Scheme | Main | Victims of $60 Million Ponzi Scheme Set For 19% Recovery »

Connecticut CPA Indicted For $1.5 Million Ponzi Scheme

A Connecticut CPA has been indicted on fraud and money laundering charges and accused of stealing at least $1.5 million from investors through an elaborate Ponzi scheme.  Joseph A. Castellano, 58, was arrested on April 6th on ten counts of wire fraud, four counts of securities fraud, one count of mail fraud, and three counts of money laundering.  Each of the fraud counts carries a maximum 20-year prison term while each money laundering count carries a maximum 10-year prison term.  Castellano has since been released on $250,000 bond.

According to the indictment, Castellano was a certified public accountant and the owner of a tax preparation business named Castellano & Company, LLC ("C&C").  While Castellano was responsible for the preparation of tax returns for individuals and entities, he also allegedly began soliciting those clients and others in July 2007 to invest in various ventures through his companies Casbo Investments, Wallingford Investors Limited Partnership, and AIM Realty Investors.  Castellano told investors that their funds would be used to either make loans to other clients or provide short-term funding for various business or real estate projects.  In return, Catellano promised annual returns ranging from 6% to 8%.  Based on these representations, Castellano raised over $1.5 million from at least 10 investors.

However, authorities allege that Castellano did not loan or invest these funds as described.  Instead, Castellano is accused of misappropriating investor funds for himself and running a classic Ponzi scheme.  

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (6)

References allow you to track sources for this article, as well as articles that were written in response to this article.

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):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>