Ponzi schemer pleads guilty

Nevin Shapiro pleaded guilty to running an $880 million multi-state Ponzi scheme.  Law professor Tamar Frankel, an authority on securities law and author of “Trust and Honesty: America’s Business Culture at a Crossroad,” says to expect more and larger Ponzi schemes.

“It is no use telling investors that ‘if the offering is too good to be true, it is!’ After all, the entire country is engaged not only in speculation but in betting — like the offerings of Ponzi schemers. Small Ponzi schemes will always remain, but large bubbles will spawn the Madoff’s and Shapiro’s Ponzi schemes.

“So expect more to be uncovered. There is no way to contain enormous frauds when bubbles in the securities markets constitute a Ponzi scheme. These bubbles are too good to be true.”

Contact Tamar Frankel, 617-353-3773, tfrankel@bu.edu

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