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 This material may not be published, broadcast, rewritten or redistributed.


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