Joseph J. Lampariello, Newport Beach CA Gets 10 years in the pen for $50 million Ponzi scheme

Posted by CotoBlogzz

Rancho Santa Margarita, California –             Joseph J. Lampariello, 62,  former Newport Beach resident was sentenced Monday afternoon to 121 months in federal prison by United States District Judge David O. Carter for running a Ponzi scheme through his Orange County-based company that defrauded hundreds of investors out nearly $50 million, according to announcement by the Department of Justice (DOJ) In addition to the prison term of just over 10 years, Judge Carter ordered Lampariello to pay $39,961,859 in restitution.

Lampariello previously pleaded guilty to one felony count of wire fraud and one misdemeanor count of willfully failing to file a tax return.

Lampariello was the president and chief operating officer of Medical Capital Holdings, Inc., a medical receivables financing company that operated out of offices in Anaheim and Tustin. Medical Capital administered several entities that raised money from investors who were told their money would be used to purchase account receivables from accredited medical providers, make secured loans and provide money for general operating expenses.

  Over 11 months in 2008 and 2009, Lampariello misappropriated funds invested with one of the entities and used the money to make Ponzi payments to prior investors and to pay himself administrative fees. Lampariello, through Medical Capital, defrauded over 700 investors of nearly $49 million.

            This case was the result of a joint investigation by the Federal Bureau of Investigation and IRS Criminal Investigation. The prosecution was handled by Assistant United States Attorney Jennifer L. Waier.