The son-in-law of former New York Assembly Speaker Sheldon Silver was arrested for allegedly running a $7 million Ponzi scheme.
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Marcello Trebitsch, 37, was arrested on Monday by federal agents and was indicted in federal court in Manhattan on charges of wire fraud and securities fraud. He was released on $500,000 bail.
Trebitsch, who is married to Silver’s daughter Michelle, could face up to 40 years in jail and $5.25 million in fines. Silver resigned in January after being arrested as part of an anti-corruption investigation.
Trebitsch allegedly promised his investors up to 16 percent returns with very low risk invested in low cap stocks before the five-year scheme collapsed in December.
He allegedly invested only a portion of the investors’ money and used the rest for personal benefit and to repay other investors, the complaint said.
Michelle Trebitsch, who is a certified public accountant, was a co-owner and managing partner of the investment fund, Allese Capital, the New York Times reported, citing the complaint. She has not been charged.