SYRACUSE, N.Y. (RNS) Since at least 2001, Richard S. Piccoli has advertised his investment business, Gen-See Capital Corporation, in The Catholic Sun, the Syracuse diocesan newspaper.
An ad in the Jan. 8 edition promised a 7.1 percent annual return on investments. Turns out that promise may have been an invitation to a scam.
Federal prosecutors have accused Piccoli, of Williamsville, N.Y., of running a Ponzi scheme that may have generated $17 million from more than 250 investors since 2004. Piccoli solicited investors through ads in Roman Catholic publications, including the Sun, federal prosecutors say.
Prosecutors aren’t sure how extensive the damage might be. “My understanding is (victims are) scattered around the country,” said Gretchen L. Wylegala, the assistant U.S. attorney prosecuting Piccoli.
The legal complaint accuses Piccoli of keeping $600,000 for his own use, but Wylegala said the amount could be higher, and the alleged scheme may date to the 1980s.
“The most formidable problem is the pool of victims and just what the loss is,” she said.
If convicted, Piccoli faces up to 20 years in prison and a $250,000 fine.
The criminal complaint says Piccoli mainly targeted the elderly and Catholics. He claimed he invested in high-quality residential mortgages.
But instead of investing the money from new investors, Piccoli used the money to pay earlier investors, the complaint says. “There is no evidence that any investments of any kind are being made by Piccoli on behalf of his investors,” the criminal complaint says.
Connie Berry, editor of The Catholic Sun in Syracuse, said she pulled Piccoli’s ad as soon as she learned of the charges. She said she never dealt with Piccoli, but he paid for the ads on time and she is unaware of any readers complaining about his business.
“My understanding is that he really preyed upon Catholic readership and used his connections with priests. That made people trust him,” she said.
Wylegala said people who run Ponzi schemes typically target a specific group to gain trust and credibility. “They think,`Ah, if a priest thinks it’s good, it’s OK,”‘ she said.
