Zamansky LLC has launched an investigation into the business practices of Capitol Investments USA, Inc., its founder Nevin K. Shapiro, and its various affiliates based on allegations that the firm operated a $900 million Ponzi scheme. The firm claimed to deliver outsized returns to investors through a so-called grocery diverting business, but according to the SEC, it used investors’ money to fund a lavish lifestyle that included a $5 million house and $1 million boat.
Most Ponzi schemes of any scale are typically aided or abetted by large financial institutions. Zamansky LLC is examining what institutions may have worked with Capitol Investments USA and Nevin Shapiro, such as brokers that allegedly were paid as much as $13 million in commissions, and other financial services providers that may have either contributed to Mr. Shapiro’s alleged fraud directly or were grossly negligent.
Moreover, some victims used their retirement accounts to invest in Capitol Investments USA, which usually requires a “custodian” who must oversee the investment to ensure it is legitimate. We are investigating whether these firms are potentially liable for losses.
If you are a victim of the alleged fraud orchestrated by Nevin K. Shapiro, or are a customer/investor in Capitol Investments, USA, Inc., contact Zamansky LLC.