January 22

Boston family sentenced in Ponzi scheme

Prosecutors say the family promised high returns from low-risk loans, but used money from new investors to pay early investors.

The Associated Press

BOSTON — A Boston couple and their son have pleaded guilty to operating what prosecutors call a Ponzi scheme that fleeced dozens of friends and neighbors out of more than $10 million.

Fifty-six-year-old Steven Palladino was sentenced to 10 years in prison after pleading guilty Tuesday. His wife, 52-year-old Lori Palladino, got two years of probation, while their 28-year-old son, Gregory, got two years in jail for their roles in the scam prosecutors say was used to fund a lavish lifestyle, including gambling vacations, jewelry and fancy cars.

Prosecutors say the family promised high returns from low-risk, high-interest loans, but used money from new investors to pay early investors.

They have also been ordered to pay restitution.

Their lawyer said the family was remorseful.

Victims cheered when the sentences were handed down.

Were you interviewed for this story? If so, please fill out our accuracy form

Send question/comment to the editors




Further Discussion

Here at KJonline.com we value our readers and are committed to growing our community by encouraging you to add to the discussion. To ensure conscientious dialogue we have implemented a strict no-bullying policy. To participate, you must follow our Terms of Use.

Questions about the article? Add them below and we’ll try to answer them or do a follow-up post as soon as we can. Technical problems? Email them to us with an exact description of the problem. Make sure to include:
  • Type of computer or mobile device your are using
  • Exact operating system and browser you are viewing the site on (TIP: You can easily determine your operating system here.)