Boca man charged with operating Ponzi scheme

BOCA RATON — Federal authorities have charged a Boca Raton man with five counts of mail fraud steming from his role in an alleged Ponzi scheme that took investors for million of dollars.

Michael Riolo, 37, of Boca Raton, faces 20 years in prison on each count if convicted.

Riolo, according to court documents, owned Sterling Wentworth Currency Group Inc. and LaSalle International Clearing Corp., which traded foreign currencies.

Between August 1999 and December 2008, Riolo convinced more than 80 clients, including several current and retired police officers, to pump about $44 million into foreign exchange investments.

Instead of making trades, Riolo allegedly used investor money for other purposes, including his own personal use.

To encourage participating investors to keep their investments with his firms, Riolo allegedly prepared false monthly profit and loss statements. In classic Ponzi scheme fashion, he allegedly distributed $29.5 million to his older clients, claiming the money was their share of the profits. Instead, that money was the investments of newer clients, according to federal authorities.