NEWwbztv-small wbz-am-small 985-small mytv38web2
NFL Commissioner Roger Goodell's Press Conference: 3pm
Watch LIVE on WBZ-TV | Listen LIVE on 98.5 The Sports Hub | Live Blog

Local

Boston Family Sentenced In Ponzi Scheme

View Comments
Steven Palladino of West Roxbury is accused of orchestrating a Ponzi scheme that cost investors about $14 million. (Credit: WBZ-TV)

Steven Palladino of West Roxbury is accused of orchestrating a Ponzi scheme that cost investors about $14 million. (Credit: WBZ-TV)

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up

BOSTON (AP) — 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.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 2,026 other followers