DA: West Roxbury couple ran Ponzi scheme

Crime

A husband and wife from West Roxbury are accused of running a multimillion-dollar Ponzi scheme that prosecutors said paid for their lavish lifestyle including vacations, casino trips and rent for the husband’s mistress.

Steven Palladino, 55, and his wife, Lori, 52, were indicted last week by a Suffolk County grand jury, the Suffolk district attorney’s office said Monday. The couple faces multiple charges including larceny over $250, making false entries in corporate books and loansharking. Steven Palladino is also charged as a common and notorious thief based on more than two dozen prior larceny convictions out of Suffolk and Norfolk counties. 

Steven Palladino is due for arraignment in Suffolk Superior Court on Monday afternoon. His wife is scheduled for arraignment next month.

Lori Palladino and the couple’s 28-year-old son incorporated Viking Financial Group, Inc., in 2007. The couple and their son are the only employees of the company, authorities said.

A joint investigation by the district attorney’s office and Boston police alleges that the couple borrowed money from investors and were told that the funds would be used to provide loans at a higher interest rate. Instead, money borrowed from new investors was used to repay prior investors and to make interest payments to all of the investors, authorities said. Viking allegedly charged as much as 60 to 200 percent interest on some of the loans, well above the 20 percent maximum allowed under state law.

Prosecutors allege that transactions show the money was transferred to personal accounts and used to cover expenses including hundreds of thousands of dollars to casinos to cover gambling loses, a vacation to the Bahamas and rent for Steven Palladino’s mistress.

It is also alleged that Steven Palladino made use of investors’ money to pay off $350,000 – a condition of his probation on a 2007 conviction for defrauding an elderly relative.

To cover the scheme, prosecutors said false loans were entered in Viking’s books.

A complaint has been made against the Viking corporation and the grand jury investigation is ongoing.

Follow Michael Naughton on Twitter @metrobosmike.



News
Entertainment
Sports
Lifestyle
International

Many deaths as boat with African emigrants sinks…

BENGHAZI Libya (Reuters) - A boat packed with up to 250 African emigrants trying to reach European shores sank on Sunday off the Libyan coast…

Local

State health department warns against rare respiratory virus…

The New York State Department of Health is calling upon parents to be aware of the symptoms of enterovirus EV-D68. More than 12 children across the…

National

Liberal Vermont Senator Sanders may seek U.S. presidency…

By Will DunhamWASHINGTON (Reuters) - Bernie Sanders, one of the Senate's leading liberals, said on Sunday he is thinking about running for U.S. president in…

Money

Second Shift: Turning fun into money

In this week's Second Shift series, meet a New Yorker who has established two successful careers around having fun.

Movies

Dan Stevens kisses Cousin Matthew goodbye

Dan Stevens wanted a change and he certainly got one. After quickly developing a devoted fan base as Matthew Crawley on "Downton Abbey," the 32-year-old…

Movies

Nerd alert: Genesis Rodriguez, robot-maker

Geeks of the world, you're about to fall in love with Genesis Rodriguez. There's no point in resisting. The actress, appearing in Kevin Smith's totally…

The Word

The Word: Kanye West wants everyone on their…

Maybe we can blame this one on the migraine, too. Kanye West is drawing ire for halting a performance in Sydney when his demands that…

Movies

That's a wrap on TIFF 2014

This year's Toronto International Film Festival closes without the satisfying sense of certainty that had become a mainstay in recent years. Last year, for example,…

NFL

3 things we learned in Jets loss to…

The wheels came off for the Jets, who gave up 21 unanswered points after a brilliant first 20 minutes in a 31-24 loss at the…

NFL

Victor Cruz catches case of the drops in…

The Giants dropped a tough, 25-14, decision to the undermanned Cardinals Sunday in their home opener. And drop was the operative word of the day,…

NFL

Giants vs. Cardinals: 3 things we learned

The Giants heard all week about how ragged their new offense has looked, but even when they finally answered the bell they still can’t find a way to win.

NFL

About a quarter of football players will get…

About one in four National Football League players are likely to end up suffering cognitive impairments during their lifetime, according to a report.

Home

DIY design: Try this upcycle furniture project

Tiffany Threadgould is living a DIY life. The Chief Design Junkie at TerraCycle, an international waste management company headquartered in Trenton, New Jersey, grew up…

Parenting

The downside of a BFF

For teenage girls a best friend can mean everything, but the way they deal with their problems together can lead to depression

Education

How many colleges should I apply to? Your…

To the average high school senior, creating the perfect college application can seem like a golden ticket into their future. Students and their parents spend…

Career

How Generation Z will change the way Americans…

What to learn how to establish a career in this new economy? Look no further than the current generation of young people - that is,…