FOX UNDERCOVER (MyFoxBoston.com) -- A West Roxbury man convicted for running one of the biggest Ponzi schemes in recent history was charged with federal criminal contempt Wednesday, accused of spending thousands of dollars on himself instead of setting aside the cash for victims.
Steven Palladino, 57, was charged in an information with 25 counts of criminal contempt, the FBI announced today. Authorities say between May and November 2013 he willfully violated court orders stemming from civil litigation that he deposit the proceeds of cash advances into an escrow account.
Instead, authorities say, he racked up nearly $13,000 in credit card charges and cash advances, including charges in high-end restaurants. He also obtained about $137,000 in loans for his wife, using three luxury vehicles as collateral.
Several of his victims have told FOX Undercover they fear they will receive a tiny fraction of what they invested – and lost – because of Palladino.
The new charges come on top of his guilty plea in January in state court to running a Ponzi scheme that lost nearly $10 million invested with him. He is serving a ten-year sentence.
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