Man pleads guilty to wire fraud in national Ponzi scheme

AP News
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Posted: Jun 21, 2016 9:29 AM

NEW ORLEANS (AP) — Federal prosecutors say a 64-year-old Louisiana man who ripped off investors in a national Ponzi scheme has pleaded guilty to wire fraud.

Instead of investing the money, U.S. Attorney Kenneth Polite said in a news release John Sposato, of Slidell, used it to buy goods and services for himself and others, including a new Chevrolet Camaro for one girlfriend and breast augmentation surgery for another girlfriend.

From January 2010 to April 2014, prosecutors say nearly 50 people invested about $811,000 with Sposato and his various companies. Sposato faces up to 20 years in prison and a $250,000 fine. U.S. District Judge Susie Morgan set sentencing for Oct. 5.