Oct 21, 2009 6:26 am US/Eastern
Alleged 'Ponzi Princess' Rocks Long Island
Lawyers: Laurie Schneider Duped Some 50 Investors Out Of As Much As $50 Million; U.S. Attorney, FBI On The Case
By ROB MORRISON, CBS 2 HD News
OCEANSIDE, N.Y. (CBS) ―
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The U.S. Attorney's Office is looking for alleged Long Island Ponzi schemer Laurie Schneider.
CBS
On Long Island another alleged Ponzi scheme is unraveling.
Investigators say the damage could run as high as $50 million.
"Indications are that there are 30-50 victims. Some have come forward. I wouldn't be surprised if there are more," bankruptcy court trustee Ken Barnard said.
Barnard has the daunting task of following the money, investigating at least four separate business enterprises run by 35-year-old Laurie Schneider of Oceanside. Her alleged Ponzi scheme bilked dozens of people out of tens of millions of dollars.
"The victims here are not wealthy. They are middle class who invested their life savings," Barnard said.
Paul Margiotta's client, "Maria," a senior citizen, lost about $2 million. He said she initially became involved with Schneider in an event planning business called "Sax and Sound Productions." But Schneider kept soliciting more money for yet more bizarre sounding deals.
"China deals were proposed where Laurie had customers who wanted to buy large types of machinery from China. She never specified what types of machinery it was," Margiotta said.
On Tuesday night Schneider's husband told CBS 2 HD his wife wasn't home despite the fact the black Mercedes identified as hers was in the driveway.
Neighbors on the dead end street said Schneider's house was a busy one, with people coming and going at all hours of the day and night. They said they always suspected a business or businesses were being run here.
Although they admitted they never suspected a multi million-dollar Ponzi scheme.
"I don't think that here. This is Oceanside, not the city," one neighbor said.
Schneider has not been deposed in this case and her lawyers have indicated that if she is subpoenaed she will invoke her Fifth Amendment right and say nothing.
Meanwhile, the FBI is conducting a separate investigation from which any possible criminal charges would come.
(© MMX, CBS Broadcasting Inc. All Rights Reserved.)
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