New details emerge in case of alleged Ponzi scheme

Published: Tuesday, April 28, 2015 @ 11:22 PM
Updated: Tuesday, April 28, 2015 @ 11:22 PM

An updated federal complaint that accuses a couple of operating Ponzi-type pyramid schemes alleges there are 450 victims who invested at least $84 million and lost more than $30 million.

The documents, written by an FBI agent and attached to a civil forfeiture complaint of William Apostelos’ assets, provides new details about how the alleged scheme fell apart and says Apostelos and his employees went to extraordinary lengths to avoid angry investors.

The seizures from Apostelos, his wife Connie and her son include two race horses, racing proceeds, bank accounts and cash totalling about $650,000 plus vehicles, jewelry and artwork.

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Apostelos faces a forced bankruptcy case, a separate civil case in Dayton’s U.S. District Court and this forfeiture action.

Some of the findings from an updated criminal complaint and affidavit filed in Dayton’s U.S. District Court this month include:

  • Spending reportedly included $400 per month on Victoria Secret’s lingerie and $35,000 per month on Connie Apostelos’ horse racing company.
  • William Apostelos diverted $17 million into his personal accounts from the proceeds of a Ponzi scheme he allegedly ran out of his office in Springboro.

 

William and Connie Apostelos, and others listed in the complaint have not been charged with a crime.

When the allegations surfaced in court documents last fall, federal officials said the couple swindled “north of $50 million” from 160 Miami Valley investors in Ponzi-type financial pyramid schemes, using the money to fund an extravagant lifestyle that included buying racehorses and a $1 million farm in Clark County.

Pamela Stanek, assistant U.S. attorney, who would not confirm nor deny if an indictment is pending.

Apostelos’ attorney, Dwight Brannon, did not return a message Tuesday from the Dayton Daily News seeking comment.