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THE-DJ
Member
16 Posts |
 Posted - 04/02/2008 : 07:18:43 AM
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I heard this person formerly lived in Everett. Most of the people were his friends over the years. Some of the people also are loosing their homes because of this person here in Everett. Was told they threw out his family from their home with just the clothes on their back and secured the house. Lock, stalk and barrel!!!!!
WAKEFIELD INVESTMENT ADVISER SENTENCED TO 18 YEARS IN PRISON
BOSTON, MA - A Wakefield man was sentenced yesterday in federal court for an investment scheme that defrauded more than 400 victims out of $20 million.
United States Attorney Michael J. Sullivan and Warren Bamford, Special Agent in Charge of the FBI in New England, announced today that FRANK J. RUSSO, age 52, was sentenced by U.S. District Judge William G. Young to 18 years imprisonment, to be followed by 3 years of supervised release, and a $500,000 fine. The Court also ordered RUSSO to pay $20,000,000 in restitution and ordered forfeiture of RUSSO’s residence and other assets. RUSSO pleaded guilty to charges of investment adviser and mail fraud at a hearing that took place immediately prior to his sentencing.
The prosecutor told the Court that had the case proceeded to trial the Government’s evidence would have proven that over a period of more than 20 years, RUSSO operated two limited partnerships, Russo Associates and Eliot Partners. RUSSO represented to his victims that monies invested through these two limited partnerships would be safely invested in bonds and other investment securities and would earn significant returns. RUSSO issued quarterly summary statements to his clients that appeared to support his representations. In reality, RUSSO did not invest the monies as he promised and neither limited partnership generated any profits at all. Instead, RUSSO compensated himself with investor monies and used the fraud proceeds to fund his family’s lavish lifestyle and to acquire assets including his home in Wakefield, a timeshare at Disneyworld, and several investment properties. In addition, RUSSO made significant transfers of investor funds to a privately held California company of which he was co-founder and chief financial officer. RUSSO did not disclose these investments, which were high risk and never generated a single return, to his investors.
Approximately 70 of RUSSO’s victims were in attendance at the hearing and more than 10 made impact statements to the Court. RUSSO’s victims, many of whom have known RUSSO for decades as a friend and respected member of the community, spoke of the devastation caused to their lives by his violation of their trust. RUSSO’s victims described for the Court not only the crippling impact of their financial losses at RUSSO’s hands, but also the emotional consequences that they continue to suffer as a result of his fraudulent betrayal of their trust in him as an investment adviser.
In sentencing RUSSO, Judge Young echoed the prosecutor’s characterization of RUSSO as a predator who exploited the trust and vulnerability of friends and family who had known RUSSO from his boyhood as a star athlete from Everett, Massachusetts. Judge Young told RUSSO, “this is a fraud that cuts to the very heart of human beings’ relationship one to another.”
The case was investigated by the FBI with assistance from the United States Securities and Exchange Commission. It was prosecuted by Assistant U.S. Attorney Lori J. Holik of Sullivan’s Economic Crimes Unit.
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THE-DJ
Member
16 Posts |
Posted - 04/02/2008 : 07:56:09 AM
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Forfeiture notice reveals wealthy lifestyle
of man who swindled many local friends
By The Advocate
EVERETT - Former Everett High football star Frank Russo, who recently began serving an 18-year prison term for fleecing hundreds of investors out of their savings, is in the process of forfeiting all of his real estate holdings, diversified stocks and bonds, cash in a series of bank accounts and the proceeds from the sale of two Everett condos.
A “notice of order of forfeiture” was legally advertised in the Boston newspapers earlier this week by Yvonne N. Bonner, the Acting US Marshal for Massachusetts.
There’s a sad irony connected with the publication of the forfeiture notice. On one hand, one gets a glimpse of the wealthy lifestyle Russo was able to enjoy over the 20 years that he masqueraded as a financial investment whiz. At the same time, one can’t help but come to the realization that Russo’s ritzy lifestyle was a direct result of his bilking of people – many of whom were long-time personal friends – out of their life savings.
The forfeiture notice included four real estate holdings, all substantial in value – the mansion-like family home in Wakefield; and interests in a Florida condo at Disney’s Wilderness Lodge and also a Winchester condo; and Russo’s interests in 727 Randolph LLC.
The US Marshal’s Office is also confiscating “all proceeds” from the sale of two Everett condominiums located on Chelsea and Ferry Streets in 2006.
The forfeiture advertisement also targets a lengthy series of bank accounts used by Russo and his wife Susan, and business entities set up by Russo – FJR Corporation, Russo Associates and Eliot Partners.
Also listed are a number of brokerage accounts, mainly with Charles Schwab and shares in two companies – Speak Tech, Inc., and Criterion Strategies.
“Upon adjudication of all third party interests, the federal government intends to dispose of the properties in accordance with the law,” says the legal notice of forfeiture.
Russo, 52, was sentenced last month to a prison term of 18 years for investment advisor fraud and mail fraud. He was also ordered to pay $22-million in restitution to his fraud victims, although most say they don’t expect that they’ll ever get any meaningful reimbursement for what they lost.
Judge William Young told Russo he was guilty of a fraud that “cuts to the very heart of human beings, relationship of one to another.”
Many of Russo’s victims had known the former Village resident for decades and considered him to be a good friend. They trusted him with the investment of their life savings, but the former football star swindled and defrauded them in a high stakes Ponzi Scheme.
The only one who made money was Russo.
Federal authorities estimate that Russo fleeced nearly 400 people out of a collective $20-million over two decades.
Many of his investors lost all their savings while Russo enjoyed a wealthy lifestyle with their money.
Russo, a father of three, was indicted last April. His wife, Susan, has filed for bankruptcy.
Following is a listing of what’s included in the “notices of forfeiture” filed by the US Marshal’s Office.
A. the real property located at 12 Evangelista Way, Wakefield, Massachusetts
B. All funds on deposit in Citizens Bank account number 130584-764-1, held in the name of Frank and Susan Russo.
C. An undivided 0.4339% interest in Unit 12A of the Villas at Disney’s Wilderness Lodge, a leasehold condominium according to the Declaration of Condominium thereof as recording in Official Records Book 6170, Page 1425, Public Records of Orange County, Florida, and all amendments thereto;
D. All proceeds, including any interest accrued thereon, of the July 28, 2006 sale of the real property located at 176-178 Chelsea Street, Unit 1, Everett, Massachusetts, currently being held in escrow by Kelly, Libby & Hoopes;
E. All proceeds, including any interest accrued thereon, of the August 30, 2006 sale of the real property located at 6-8 Ferry Street, Unit 2, Everett, Massachusetts, currently being held in escrow by Kelly, Libby & Hoopes;
F. All funds on deposit in BayBank/BankBoston/Fleet/Bank of America checking account number 39299143, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
G. All funds on deposit in BayBank/BankBoston/Fleet/Bank of America checking account number 11828701, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
H. All funds on deposit in Eastern Bank checking account number 403306376, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
I. All funds on deposit in Charles Schwab Brokerage account number 7711-5420, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners
J. All funds on deposit in First American Discount/Man Financial Brokerage account number 91156294, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
K. All funds on deposit in Eastern Bank checking account number 600088181, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
L. All funds on deposit in Charles Schwab profit sharing plan number 1177-3399, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
M. All funds on deposit in Charles Schwab Money Purchase Plan number 1177-3402, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
N. All funds on deposit in Eastern Bank checking account number 600088108, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
O. All funds on deposit in Charles Schwab Brokerage account number 7712-6011, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
P. All funds on deposit in Eastern Bank checking account number 600088116, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
Q. All funds on deposit in Man Financial Brokerage account number 91181489, held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
R. All shares of Criterion Strategies, Inc. held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
S. All shares of Speak Tech, Inc. held in the name of Frank J. Russo, Susan Russo, FJR Corporation, Russo Associates, and/or Eliot Partners;
T. All funds owed to Russo Associates partnership by William and Judi Doyle, due to inadvertent overpayment at dates of account closure on April 17, 2006.
U. One Thomas Kinkade painting, currently in the custody of the Defendant’s counsel;
V. $400 in proceeds of the sale of home furnishings currently being held by the United States Marshals Service;
W. the Defendant’s interest in 200 Swanton Street, Unit T20, Winchester, Massachusetts; and
X. the Defendant’s interest in 727 Randolph LLC, (collectively, the “Properties”). Upon adjudication of all third party interests, the United States of America intends to dispose of the properties in accordance with the law.
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