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.