TRENTON, N.J. (AP) — Federal authorities say a Florida man has been arrested on charges he allegedly operated an $18 million Ponzi scheme involving victims from New Jersey.
New Jersey’s U.S. attorney says Louis J. Spina was arrested Monday and charged with wire fraud.
It’s not immediately clear who will represent him Monday afternoon in federal court in Trenton.
Authorities say the 56-year-old Miami resident, formerly of Colts Neck, N.J., collected $18 million from 28 investors over a three-year period. Prosecutors say Spina promised to invest the funds through his business, LJS Trading LLC, and guaranteed monthly rates of return as high as 14 percent.
Prosecutors say Spina lost $8 million of the investments in unsuccessful trading, and used the remaining $10 million to pay monthly interest payments and for personal expenses.