Did Your Financial Advisor Suggest You Invest In Perry Santillo’s $115.5M Ponzi Scheme?

Perry Santillo, an investment manager based in Rochester, New York, has pleaded guilty to participating in a $115 million Ponzi scheme that defrauded at least a thousand investors by convincing them to invest in businesses that had little or no operations.

He and his associate Christopher Parris solicited investments in their companies, which were supposedly involved in financial services, insurance, and real estate, including First Nationle Solution LLC, Percipience Global Corp., and United RL Capital Services.

Initially, investors received returns as promised, which led them to believe they had made a smart investment. Then the payments stopped. Some investors lost their life savings.

Before getting caught, Santillo and Parris spent wildly on themselves. Santillo even performed a song about himself at a Las Vegas nightclub that bragged about his ten thousand-dollar suits and spraying champagne.

What Is A Ponzi Scheme?

A Ponzi scheme is a popular form of fraud where new investor money is used to pay old investors. The investor believes they’re being paid dividends out of profits from the business they bought into, but they’re really receiving another investor’s cash.

As the scam grows, Ponzi schemers need more and more money to keep the lie going. When they can’t find it, the scheme collapses, and the victims lose their money.

Santillo And Parris Buy Investment Advisers Businesses To Find Victims

The Security and Exchange Commission’s complaint against Santillo and Parris says that they found victims by buying the businesses of investment advisers or brokers and convincing some of their customers to put money into the scam. One broker who steered clients to the scheme is the subject of a criminal investigation. Other registered brokers also advised clients to invest in the scheme.

Scott Silver, a leading investment fraud attorney recognized as being one of the best lawyers for victims of stockbroker misconduct, was interviewed by The New York Times for an article on Ponzi schemes. The article examines the new tactics used by perpetrators of Ponzi schemes in the years since Bernie Madoff was caught running the largest Ponzi scheme ever in 2008.

Silver, who has assisted victims of Santillo and Parris, told The Times “These are investors who didn’t even know where to begin doing due diligence. A lot of the traits of this scheme have become very typical of what we’ve seen over the last decade.”

Did Your Financial Advisor Suggest You Invest With Perry Santillo Or First Nationle?

If your financial advisor suggested that you invest with Perry Santillo, Chris Parris, First Nationle, or other associated companies, you may have a claim to recover your investment losses. Silver Law Group has significant experience pursuing claims against broker-dealers through FINRA or securities arbitration as well as class action lawsuits against issuers and other potential third parties.

Silver Law Group is a nationally-recognized securities law firm headquartered in South Florida representing investors worldwide with their claims for losses due to securities and investment fraud. The firm has successfully recovered multi-million dollar awards for its clients through securities arbitration and the courts. To contact Scott L. Silver to discuss your legal matter, call toll-free (800) 975-4345 or e-mail him at SSilver@silverlaw.com.