A former Wethersfield man waived indictment and pleaded guilty in federal court in Bridgeport a multi-million-dollar Ponzi scheme which defrauded hundreds of investors of more than $30 million dollars from 1997 until last November.
Prosecutors say 39-year-old Michael Goldberg accepted the money from investors, claiming he would use it to buy and sell diamonds, telling the investors he would be able to pay them 20 to 25 percent returns on their investment every two or three months.
He also claimed to have the inside track on buying distressed assets from the JP Morgan Chase Bank, with no risk to the investor. Prosecutors say that in pleading guilty, Goldberg admits that none of those representations was true, that except for a brief period at the beginning of the scheme, he did not buy diamonds, that he had no relationship with Chase, and that he neither bought nor sold any foreclosed and seized assets. He also admitted creating false documents to make it appear to investors that the scheme was legitimate.
U.S, Attorney for Connecticut David Fein says Goldberg’s actions through his companies “Michael S. Goldberg, LLC” and “Acquisitions Unlimited Group” resulted in “financial misery” for many of his clients.
Goldberg faces a maximum prison term of 60 years at his sentencing in December and restitution of at least $30 million .