Associated Press - November 20, 2009 2:14 PM ET
NEW ORLEANS (AP) - A federal grand jury has indicted a Louisiana businessman on charges he defrauded investors out of roughly $19.5 million in what prosecutors call a Ponzi scheme.
The 63-count indictment handed up Friday says Matthew B. Pizzolato used investor funds to buy such personal luxuries as cars, furniture, jewelry and cruises. The charges include securities fraud, money laundering and obstruction of justice.
The indictment says Pizzolato had offices in Baton Rouge, Covington, Hammond and Lake Charles from 2005-2008 and advertised investment services under company names including Gulf Region Guaranty Inc.
Pizzolato, authorities say, allegedly promised investors their money was protected against losses. But prosecutors said Pizzolato used it in high-risk futures trading and other risky ventures that investors didn't authorize.
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