Court Tries to Recover Millions from Bankrupt Ponzi Schemer
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Court Tries to Recover Millions from Bankrupt Ponzi Schemer

October 18, 2011

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A bankruptcy court in Florida is having a difficult time recovering millions of dollars in fraudulent investments that were allegedly stolen by Nevin Shapiro, who recently admitted to running a lucrative Ponzi scheme.

According to the Miami Herald, a bankruptcy trustee has recovered roughly $19 million of the stolen money, but Shapiro allegedly bilked investors out of a total of $83 million.

Through his Ponzi scheme, Shapiro allegedly stole money from at least 60 investors from across the country. The Miami Herald reports that Shapiro's activities amounted to one of the largest financial crimes in the history of Florida.

Earlier this year, Shapiro made national headlines after admitting to giving hundreds of thousands of dollars in illegal payments to athletes at the University of Miami. The scandal left the university reeling, and led to a serious NCAA investigation.

In seeking to recover money for the investors who were scammed in Shapiro's Ponzi scheme, the Florida bankruptcy trustee has left no stone unturned. Notably, the trustee has claimed that he will pursue money from former athletes who received improper benefits from Shapiro.

Another potential source for recovered funds is Shapiro's 58-foot yacht, which he often used to entertain potential "clients" and athletes at the University of Miami.

In 2008, Shapiro was reportedly desperate to pay a million dollar debt to his attorneys, so he simply gave them the yacht as payment. In an effort to recover the value of the yacht, the bankruptcy trustee has filed a lawsuit against Shapiro's attorneys.

In their defense, his attorneys allege that Shapiro stole money from their company to pay their legal fees, so the yacht should rightfully remain in their hands as compensation.

Even if the bankruptcy court is able to get its hands on the yacht, it may be disappointed in the value of the vessel. Sources indicate that the yacht was poorly maintained, and that the interior is completely "trashed."

The attorneys, who had represented Shapiro in criminal court in disputes prior to the revelation of his Ponzi scheme, displayed a sense of humor when they acquired the boat, as they gave it the fitting name of "Knot Guilty."

In the midst of this madness, the victims' bankruptcy attorneys will continue seeking payments from the people who benefited from Shapiro's phony largesse.


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