NJ Man Pleads Guilty in Massive Ponzi Scheme


Jonathan Rosenberg pleaded guilty to conspiring to commit wire fraud in addition to a complex and lucrative Ponzi scheme. Rosenberg is required to pay back the $148,251,859 that his scheme netted from victims.

The West Orange Patch discusses the ruling further.

According to authorities, Rosenberg faces a maximum sentence of 20 years in prison.

U.S. District Judge James K. Bredar scheduled sentencing for June 14.


Co-defendant Richard Shusterman, 53, of Highland Beach, Florida, has pleaded not guilty to charges filed against him relating to the scheme.

“Jonathan Rosenberg and his co-conspirators perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $148 million,” said U.S. Attorney Rod J. Rosenstein. “The conspirators pretended that they were repaying investors with revenue earned by collecting patient debts, but they were really using the money of new victims to repay previous investors.”

According to prosecutors, Rosenberg and co-conspirator Douglas Kuber operated Account Receivable Services, LLC (ARS) in New York, New York. Beginning in February 2007, they entered into an agreement with International Portfolio, Inc. (IPI), which was operated by co-defendant Robert Feldman and Feldman’s business partner, to promote the sale of IPI debt portfolio.

According to prosecutors, pursuant to their agreement, IPI acquired accounts receivables from hospitals (past due patient accounts), bundled them into investment portfolios, and then sold the portfolios to ARS at a discounted rate. ARS’s purchases of the medical debt portfolios from IPI came from investors who agreed to lend money to ARS on a fixed-term basis in return for a high, fixed interest rate. IPI agreed to manage the collection activity for each debt portfolio that IPI sold. Any funds collected by IPI were to be forwarded to escrow accounts opened and maintained by ARS, which, in turn, would use the funds to cover the periodic interest payments and outstanding balances owed to the investors.

For more on the details of this case, read the full article here.

Photo by MIKE via Flickr CC License

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