Bloomberg Law
Free Newsletter Sign Up
Bloomberg Law
Welcome
Go
Free Newsletter Sign Up

Ex-Real Estate Firm CEO Charged With $350 Million Ponzi Scheme

Sept. 30, 2020, 12:01 AM

The former CEO of real estate firm Professional Financial Investors Inc. was charged Tuesday with running the company as a Ponzi scheme through which it collected more than $350 million from investors since 2015, as well as embezzling more than $26 million.

Lewis Wallach, who was hired at PFI around 1990 and served as president and CEO, was charged with wire fraud and conspiracy to commit wire fraud. Between 2015 and May 2020, the firm and its related companies raised the money from more than 1,000 individual victim investors, according to federal prosecutors.

PFI “became a classic Ponzi scheme,” ...