New York investment firm president admits running 54 million dollar Ponzi scheme

The president of a New York investment firm pleaded guilty on Friday to running a 54 million dollar Ponzi scheme that defrauded hundreds of investors, UPI reported. Richard Teplitsky, 72, of Williamsville, pleaded guilty to mail fraud in federal court located in Buffalo. [1]

According to UPI, Teplitsky was the president of Woodhill Capital Corporation. The firm promised investors returns of 14 percent or more by financing loans to businesses purchasing commercial equipment. Officials said the scheme operated over nearly three decades. [1]

UPI reported that prosecutors said Teplitsky did not invest the money as promised. Instead, he used money from new investors to pay earlier investors, which is a practice commonly known as a Ponzi scheme. [1]

Large financial scams involving Ponzi schemes have drawn federal prosecution before, such as the Bernie Madoff investment scandal discovered in late 2008. Madoff admitted that his business was an elaborate multi-billion-dollar Ponzi scheme before his arrest. [2]