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Bellmore, NY - Synagogue Members Hit with 'Gift Card' Scam [video] |
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Craig Ginsberg
A Long Island man was in jail today after pleading not guilty to charges he ran a "gift card" Ponzi scheme.
Victims included doctors, lawyers and accountants of a Bellmore, Long Island synagogue.
"He should go to jail and I just don't like what he did and I'm sorry this happened to all of these people," Bellmore resident Bambi Brodsky said. "Because for a lot of them, it was their life savings."
Together congregants lost thousands and are now comparing the suspected swindler, Craig Ginsberg, to Bernard Madoff, wondering how the charming man they knew and trusted could allegedly stoop so low.
"And I guess it just got lost, fall through the cracks," resident Fay Mihos said. "And now those cracks are opening at the seams and everything is coming to light."
This afternoon Ginsberg was arraigned on 12 felonies, accused of operating a Ponzi scheme that promised investors -- many were family friends and Hicksville neighbors -- that he could get gift cards to nearby stores and sell them for half price.
Nassau County investigators said when word spread of the success dozens fronted money and jumped aboard, losing their shirts.
"This is no misunderstanding. This is your classic Ponzi scheme -- an individual who preyed on friends and family lured them in with offers that were too good to be true," District Attorney Kathleen Rice said.
Ginsberg's attorney denies the intent was fraud.
"That could be considered illegal if he made a profit on it," said Michael Schwed, Ginsberg's attorney. "He swears he never took a nickel from any of the investors that were putting the money in."
Rice said Ginsberg, who checked himself into a hospital psych ward and was released, duped friends and family with promises of huge discounts on luxury sports boxes, and overseas timeshares, stealing more than $4 million from as many as 63 victims.
"We were a little curious about what was going on, but we never thought something like, you know, he was doing something like this at all," neighbor Nicole Burdo said.
Police said Ginsberg has prior arrests for larceny fraud crimes. He is being held on $500,000 cash bail.
Rice said one victim of the alleged Ponzi scheme lost $1 million, while others are out several hundred thousand dollars each.
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Read Comments (6) — Post Yours »
1
Mar 10, 2009 at 10:09 PM moneymatters Says:
Alwsays beware when something sound to good to be true it is to good to be true.....
2
Mar 11, 2009 at 04:58 AM If it makes you dream... Says:
If a business proposition makes so much money for doing nothing other than investing your money and makes you dream of easy millions -- it is almost always a scam. Especially if it could be done by the person offering you the opportunity. Why would anyone ever offer you the opportunity. He would keep it to himself ! This guy is a thief and only feels bad now that he has been caught.
3
Mar 11, 2009 at 03:21 AM money in the garbage Says:
How dumb can people be? It just goes to show that you don't have to be smart to have money. These guys seemed to have money eithout any brains.
The neighbour says they were a little curious about what was going on. Well could I also have a bit of your money for your curiosity?
4
Mar 11, 2009 at 08:54 AM Shlomo Says:
Can someone explain exactly what this fellow did? Not very clear in the article.
5
Mar 11, 2009 at 10:15 PM Anonymous Says:
“ Can someone explain exactly what this fellow did? Not very clear in the article. ”
did you try reading the article?
6
Mar 11, 2009 at 11:26 PM Anonymous Says:
“ Can someone explain exactly what this fellow did? Not very clear in the article. ”
took money from investors