Bank of America Settles With Court-Appointed Trustee for Fraudster Nevin Shapiro’s Former Company
U.S. Bankruptcy Judge Laurel Isicoff has approved a $5.9 million settlement between the court-appointed trustee for Capitol Investments USA, Inc. (“Capitol”), the company formerly run by jailed Ponzi schemer Nevin Shapiro, and Bank of America Corp. Shapiro and Capitol maintained bank accounts at Bank of America. Bank of America agreed to pay $5.9 million to the court-appointed trustee to settle allegations that the bank ignored warning signs which could have uncovered the Ponzi scheme.
Nevin Shapiro, a former University of Miami football booster, is currently serving 20 years in federal prison after pleading guilty in 2010 to securities fraud and money laundering in connection with a $930 million Ponzi scheme he perpetrated on investors in Florida, Illinois and elsewhere. Shapiro promoted Capitol as a grocery wholesaler with tens of millions of dollars in annual revenue when, in reality, Capitol was not engaged in any income generating business.
Shapiro allegedly persuaded more than 50 investors to invest over $930 million in his former company, Capitol, by promising monthly returns of up to 26 percent. The criminal complaint claimed that Shapiro used investors’ funds to pay “interest” to earlier investors, fund Shapiro’s lavish lifestyle and boost University of Miami sports, including a pledge of $150,000 in return for having his name placed on the student lounge.
Investors nationwide who have been the victim of financial fraud, may contact the Florida securities arbitration attorneys at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to email@example.com.