"West Roxbury family’s Ponzi scheme allegedly pilfered $10m" by Martin Finucane and John R. Ellement | Globe Staff September 19, 2013
Steven and Lori Palladino, 56 and 52 respectively, had previously pleaded not guilty to running the Ponzi scheme. On Sept. 30, the couple and their adult son, Gregory Palladino, 28, are all scheduled to be arraigned on the new wave of charges in Suffolk Superior Court....
Prosecutors said the money was often allegedly transferred from the company’s account into personal accounts of the Palladinos. The money was then spent on items such as luxury vehicles, a vacation in the Bahamas, rent for Steven Palladino’s mistress, and payments to casinos to cover apparent gambling losses, prosecutors alleged....
One of the alleged victims, a retired doctor, Ronald J. Nasif, said he hopes the new criminal charges will prompt Steven Palladino to do something all of the alleged victims desperately need him to do.
“We need to know where our money went,’’ said Nasif, who declined to specify how much he lost. “Only the Palladino family knows where this money went. Tell us where the money is!”
But Mitchell Zuckoff, a former Globe reporter and author of “Ponzi’s Scheme: The True Story of a Financial Legend,” said that, in general, victims of Ponzi schemes collect just pennies on the dollars they have invested with the scam operator.
“I can’t speak to this one specifically, but usually by the time a Ponzi schemer is found, he or she has found a way to spend a large portion of the money collected,’’ said Zuckoff, now a Boston University journalism professor.
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Also see: Ponzi scam brings 10-year sentence
