Marcello Trebitsch, son-in-law of former State Assembly speaker Sheldon Silver was arrested on Monday for running a pyramid scheme, doing investors out of $7 million, the NY press reported, citing a criminal complaint filed in federal court by Preet Bharara, United States attorney for the Southern District of New York.
Trebitsch, 37, a certified public accountant from Brooklyn who is married to Michelle, the daughter of Assemblyman Sheldon Silver who is under indictment for corruption, told his investors that he was going to trade in securities with their money, through his investment fund, Allese Capital.
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Trebitsch promised investors 14 to 16 percent returns and low risk, and so the investors, a Maryland real estate developer and his accountant, gave him $7 million between 2009 and 2013.
It’s nice to have connections.
But, according to the state attorney’s office, he only invested some of the money his patsies gave him, sustained “enormous trading losses” which he kept secret — and with the rest he bought nice things for himself and for the wife. Meanwhile, he sent out fabricated monthly account statements and tax forms showing returns ranging from 15 to 19 percent.
Silver’s daughter has not been charged so far, but according to the complaint she is a co-owner and managing partner in Allese, and she “kept the books, ” so she could have a passing knowledge of the fact that the fund was not making the money her husband reported to his alleged marks.
“Investing in securities entails certain risks, but should not include the risk of being defrauded by one’s investment manager, ” Bhahara said.
The FBI arrested Trebitsch, who was charged with one count of wire fraud and one count of securities fraud. He appeared in Manhattan federal court Monday, and was released on a $500, 000 bond.
