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.
© 2016 Cox Media Group.
Accused Ponzi schemer charged with federal criminal contempt
FOX25 Investigates: Another family comes forward in autopsy paperwork backlog
FOX25 Investigates: Reports of favoritism among MassDOT towing contracts
Gov. Baker calls for action after FOX25 Investigates uncovers dangerous loophole
FOX25 Investigates state-funded agency spending your tax dollars on…