Cherry Hill, NJ – Ponzi Scheme Investigated after Death of Schemer

Cherry Hill, NJ – Financial planner David L. Garfield enjoyed life as a “pillar” of the community, serving as president of the Katz Jewish Community Center and the synagogue M’Kor Shalom in Camden County.

At the same time, say criminal investigators, Garfield scammed family and friends out of millions of dollars, pillaging trusts for widows and the disabled and investments set aside for inheritances and retirements.

Since Garfield’s death Jan. 26 at 67, authorities have discovered that the Cherry Hill resident ran an elaborate Ponzi scheme they believe dated to at least 1993.

In lawsuits filed since January in Camden, Burlington, and Middlesex Counties, more than 20 investors claim losses totaling more than $5 million. Victims include a woman in her 90s and a close friend’s autistic grandson.

Garfield’s death has presented a stalemate for the Camden County Prosecutor’s Office, which is ending its criminal probe.

“Was a crime committed? Yes. Who did it? David Garfield. Was anyone else involved? No,” said Assistant Prosecutor Mark Chase, who is overseeing the investigation. But, he said, “we can’t prosecute a dead guy.”

No one knows what happened to the money managed by Garfield, named by Philadelphia magazine last year as one of the region’s top 100 financial planners. His clients hope to recoup their losses, but there lawyers say it doesn’t appear there’s much left.

The lawsuits, against Garfield’s estate, his widow, and his financial companies, will likely take years to resolve.

“This was a scaled-down version of Bernie Madoff,” said lawyer Charles Radler, who filed the first suit against Garfield.

Read the full story at Philadelphia Inquirer