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$20M Defrauded In Alleged Ponzi Scheme

Investors allegedly swindled for millions by former Wethersfield man

By Kristie Borges

| Monday, Nov 23, 2009 | Updated 6:30 PM EDT

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A Wethersfield man is accused of running a Ponzi scheme and scamming investors of $20 million.

For years a Wethersfield man allegedly schemed investors out of $20 million.

According to court affidavits, Michael Goldberg, 38, ran his Ponzi scheme for 12 years from 1997 until 2009.

This is how the United States Attorney says it all went down: Goldberg ran the investment business Acquisitions Unlimited Group (AUG) out of his home. He allegedly falsely represented to prospective investors that he and AUG were in the business of liquidating assets held by JP Morgan Chase and he would induce investors to provide him and AUG funds by promising and paying up to 20 percent in quarterly returns.

Of course this is a case of 'if it seems too good to be true, it probably is'. The U.S. Attorney claims Goldberg’s promises to his investors were false. He allegedly paid old investors with new investors funds, a typical Ponzi scheme pattern.

This scheme wasn’t as large as Bernie Madoff’s, but he allegedly took money from more than 100 investors in several states including Connecticut, New York, Florida, Arizona, California and Vermont.

On Monday, Michael Goldberg surrendered himself and appeared before the United States Magistrate in Hartford, where he was released on $1million bond.

He’s charged with using interstate wires to promote a fraudulent scheme and faces up to 20 years in prison, if convicted.