By Mark Scott
Buffalo, NY – Federal prosecutors are accusing an Amherst man of running a Ponzi scheme that defrauded hundreds of local investors out of millions of dollars.
Richard Piccoli, 82, is charged with a felony count of mail fraud. The US Attorney's office says Piccoli's business Gen-See Capital advertised in Catholic publications here and across the nation seeking investors, claiming high returns. Many of them were Catholic priests and parishes.
Prosecutors says Piccoli allegedly carried out a classic Ponzi scheme in which he used new investment funds to pay existing investors.
"He is alleged to have explained in detail to a prospective investor how he invests that money in discounted real estate mortgages," said Assistant U.S. Attorney Gretchen Wylegala in a written statement. "According to the complaint, a review of his bank records by law enforcement agents shows no such investments."
Wylegala sayss his company has taken in $17 million since 2004.
Piccoli faces a maximum sentence of 20 years in prison and/or a $250,000 fine if he's convicted.