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Feds: LI Man in $62 Million Ponzi Scheme

Feds: LI Man in $62 Million Ponzi Scheme

Woodmere - (WALK)  A Long Island man faces up to 20 years in prison when sentenced for his role in a massive Ponzi scheme involving commercial real estate investments.

Gershon Barkany, 29, pleaded guilty to charges of wire fraud Wedensday.  Prosecutors say Barkany, of Woodmere, cheated seven investors out of $62 million over a period of three years beginning in 2009.

In one case Barkany cheated an investor out of $46.5 million for what was supposed to be a down payment for an office building in Manhattan, properties in Queens and Bronx, and for a hotel in Atlantic City, said prosecutors.

Barkany, a father of two, used some of the money to pay previous investors, but also spent money on personal expenses and on gambling junkets, according to court records.

 

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