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

'Barack Obama cheats on Michelle' claims Japanese politician…

A senior Japanese politician has marred Barack Obama's official visit to Tokyo with bizarre claims that the President cheats on his wife Michelle. Kazuyuki Hamada,…

International

British Royal family devastated by freak NY death…

The British royals have been left devastated by the death of Mark Shand, younger brother of Camilla, Duchess of Cornwall, after a freak fall in…

Local

VIDEO: Police seek suspect in molotov cocktail attack…

Police released surveillance video on Wednesday in hopes of tracking down a man who threw a molotov cocktail inside a Brooklyn corner store.

Local

City Council budget asks for 1,000 additional NYPD…

Speaker Melissa Mark-Viverito unveiled the City Council's budget priorities on Wednesday, including the extra cops for the NYPD at a cost of $94.3 million.

Television

‘Survivor: Cagayan’ recap: Episode 9

It was only an hour-long episode, but there's a lot to cover this week. The drama of Survivor strikes again as the identity of the…

Television

TV watch list, Wednesday, April 23: 'Suburgatory,' 'Modern…

'Suburgatory' The men of "Suburgatory" go camping and Tessa mentors a social outcast in a Miss Chatswin contest, which brings her, once again, into conflict…

The Word

The best lines from Oprah's ex-stepmother's Daily Mail…

Oprah’s ex-stepmother, Barbara Winfrey, is out for revenge.

Books

A debut novel about fate, love and moving…

Pia Padukone talks about her debut novel, "Where Earth Meets Water."

NFL

2014 NFL Mock Draft: Updated, new April 24…

2014 NFL Mock Draft: Updated, new April 24 version

NFL

Giants 2014 regular season schedule

The Giants will play five prime-time games — against the Lions, Redskins, Eagles, Colts and Cowboys.

MLB

Jets 2014 regular season schedule

The Jets will play three prime-time games — against the Bears, Patriots and Dolphins — as well as a CBS national game in Week 2 at Green Bay.

NBA

Phil Jackson talked to Steve Kerr, pushes for…

Knicks president Phil Jackson spoke to the media for the first time since firing head coach Mike Woodson on Monday.

Style

Pippa Middleton's Etsy pick: Golden Thread Jewelry

Get a look at the jewelry Pippa Middleton loves and find out how you can buy it too.

Parenting

What every parent needs to know to get…

Mom and author of "Small Talk," Tracey Blake, shares her five practical tips to help you develop your children's language skills.

Sex

Subway crush: Meet your soulmate on your commute

Read about a couple who has been 40 years after meeting on the train.

Tech

Happy birthday, Game Boy! The handheld console turns…

Nintendo's Game Boy turns 25 this week. To commemorate, we look at some of its better games, like "Tetris" and "The Legend of Zelda: Link’s Awakening."