Orthodox Jew Sentenced In $32 Million Ponzi Scheme

Joseph Greenblatt, an Orthodox Jew with a criminal history stretching back over two decades, was sentenced today in a Manhattan court to 6 to 18 years in prison for stealing $32 million in a Ponzi scheme that targeted Orthodox Jews. He was also ordered to pay restitution.

Joseph Greenblatt

Orthodox Jew Sentenced In $32 Million Ponzi Scheme
Shmarya Rosenberg • FailedMessiah.com

Joseph Greenblatt, an Orthodox Jew with a criminal history stretching back over two decades, was sentenced today in a Manhattan court to 6 to 18 years in prison for stealing $32 million in a Ponzi scheme that targeted Orthodox Jews. He was also reportedly ordered to pay restitution.

In September, Greenblatt pleaded guilty in Manhattan to grand larceny, securities fraud and related crimes in the scheme.

The 50-year-old from Queens ran the Ponzi scheme through Maywood Capital, his real estate investment company that was originally located in Paramus, N.J.

The scheme ran from 1995 through 2004. Most of the victims are Jewish; many are retirees living in various Florida communities. One of Greenblatt’s victims was a Brooklyn synagogue.

"He knew that when I entrusted this money to him, it was for the use of my daughter and disabled former spouse. My former spouse Bonnie is now receiving money from Social Security, food stamps and Medicaid. My daughter is medically uninsured because I cannot afford to pay premiums for her health insurance,” Stephen Coffey, a Sarasota, Florida retiree reportedly said in a statement to the court.

Greenblatt already served seven years in federal prison for defrauding the Department of Housing and Urban Development in 2001. He spent $2.3 million of the Ponzi scheme’s money to reimburse the federal government for that scam.

He was indicted by a state grand jury in Bergen County, New Jersey in August 2004 on charges that he wrote $1.9 million in bad checks to investors. He’s due to be tried next year on those charges.

Joseph Greenblatt and his father Max also pleaded guilty in 1995 to criminal charges in Brooklyn in connection with a securities fraud scheme.

[Hat Tip: The Lion.]

Comments

[J]

Was he Haredi or Chabad?

[maven]

Hooray, former members of Young Israel of Forest Hills. Needless to say, Hungarians.

[jancsibacsi]

maven-i dont get you youre saying he is hungarian?you know him personally?

[Zipperless Baggie]

Would you invest money with someone who served time in jail??? I know the years kink of overlap, but still...

[steve o rino]

His father, and even his mother, was a huge ponzi schemers in the late 80s and early 90s. Many elderly Boro Parkers lost their life savings with them, but never came forward mainly due to intimidation. Neither he or his father were particularly religious, I don't think they even pretended. It is pretty amazing that people continue to trust these scumbags. I bet David Schick would be able to restart his business (if he hasn't already) and raise ens of millions.

[simple jew]

B"H

What's the nonsense with restitution.
Let's see you send a guy to jail for 6-18 yrs....
Like he is gonna make a lot of money there making license plates?
I think they get like 25cents an hr to work there.

Considering 2nd conviction I guess makes sense to send him for longer rather than shorter but I would rather see him working at regular job paying 50 cents o every dollar earned to his victims.

Also was this state not federal?

[sadisticstevestrong]

So he spent $2.3 million of the Ponzi scheme’s money to reimburse the federal government for that scam. Used one scam to pay off the penalty of a previous scam?

Scumbag.

[Shmarya]

Also was this state not federal?

Posted by: simple jew | November 21, 2012 at 09:48 PM

State.

[simple jew]

B"H
Suprised state not fed.
It was multistate clients.
Sure he used mail in his business.
Lucky for him. Feds would be even harsher.

[Aussie]

Lucky for him. Feds would be even harsher.

Posted by: simple jew | November 22, 2012 at 11:29 AM

True....But state prison will be a lot harder then federal....

[steve]

i know him, guy is not orthodox since his early 20s