St. Augustine Woman Indicted for Ponzi Scheme
A St. Augustine woman has been federally indicted for running a Ponzi scheme involving her investment company. Prosecutors allege over $100 million was involved in Lydia Cladek's scheme.
Cladek, president and sole sharholder of Lydia Cladek, Inc., reportedly accepted funds from investors and told them their investments would be invested in high end car notes. Cladek promised she would purchase the notes, handle them, and if the note was defaulted upon then repossess the vehicle and collect on any deficiencies. However, prosecutors allege she did not purchase every note she said she would purchase and used a majority of the investments she received to finance her personal lifestyle.
Cladek could face up to 20 years in prison and over $3 million in fines. The lesson to this story is be skeptical of who you invest money with. Ask to see financial documents and company records. Check out the company's business ratings with the Better Business Bureau (BBB). Check to see if they are an "active" company at sunbiz.org. Due diligence by potential investors provides the best defense against the type of activities alleged in this case.
To read more about this story visit $100M St. Augustine Ponzi scheme alleged.
To find out more about how to protect yourself from predatory investments and what rights you have as a victim of such schemes, please contact Wood, Atter & Wolf, P.A., a Jacksonville, Florida law firm.
