Businessman charged with $28 million Ponzi scheme

By The Associated Press

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CHICAGO (AP) — The owner of a suburban Chicago printer repair company is charged with swindling at least 60 investors by promising to make them rich through what turned out to be a $28 million Ponzi scheme.

Federal prosecutors on Thursday said 50-year-old Matthew Scott of Elmhurst lied to investors by claiming he was buying printers with a value of more than $100,000 and reselling them at a profit.

But prosecutors contend there were no printers and Scott was paying established investors out of funds coming in from new ones.

Scott is now charged with mail fraud.

Defense attorney Dennis Berkson refused to comment on the charges.