(NEW YORK, NY) — A New York man will spend 56 months in jail after pleading guilty to running a real estate Ponzi scheme.
Gershon Barkany defrauded investors out of around $62 million. Beginning in 2009, Barkany scammed 10 victims by convincing them to invest in his “risk free” commercial purchases which he would immediately resell for a profit.
However, those “risk free” deals never existed. In fact, Barkany never invested the money in commercial properties. According to reports, he faked real estate documents and agreements with property owners.
As a result, the investors lost everything. Reports state that some of the money was put toward gambling and living expenses while some was used to pay earlier investors.
Along with the 56-month sentence, Barkany must forfeit $62 million and pay restitution in an amount that has yet to be determined.