NEW ORLEANS, LA (WVUE) - Federal Investigators say a Slidell man took in more than $800,000 from investors in what they describe as a Ponzi scheme.
U.S. Attorney Kenneth Polite says John Sposato, was charged in a bill of information with wire fraud for his role in promoting and operating the national scheme.
According to the bill, Sposato, of Slidell, owned or operated a number of different companies. Investigators allege Sposato would offer participants a chance to invest in what he represented as low-risk, high-return ventures.
But the feds say Sposato did not actually invest the money in any legitimate investment vehicle. Instead, he spent the money on himself and his friends, including a new Chevrolet Camaro for one girlfriend and breast augmentation surgery for another.
The bill of information alleges between January 2010 and April 2014, 48 people invested $811,305 with Sposato and his companies.
The Federal Bureau of Investigation handled the investigation of Sposato.
If convicted, Sposato could be sentenced to twenty years in prison and a $250,000 fine.