IBJNews

Former Hoosier sentenced in Florida Ponzi case

Back to TopCommentsE-mailPrintBookmark and Share

Former Indianapolis developer Sydney “Jack” Williams has been sentenced to one year in prison after pleading guilty in September to failing to report millions of dollars he received in commissions related to a Florida investment scheme.

Williams, of Naples, Fla., the founder of Indianapolis retail-center development firm Williams Realty Group, was sentenced Tuesday in a federal court in New Jersey. He also received one year of supervised release and was ordered to pay a $25,000 fine.

The charge of subscribing to a false tax return carried a maximum penalty of three years in prison and a fine of $250,000.

Williams admitted to failing to report $6.4 million in income from 2004 through 2007 that he earned from Miami Beach, Fla.-based Capitol Investments USA.

Its CEO, Nevin Shapiro, pleaded guilty in September 2010 to money laundering and securities fraud in what authorities called a $900 million Ponzi scheme. He was sentenced in June to 20 years in prison.

According to court papers, Williams earned a 10-percent commission on loans to Capitol from a group of Indiana and Florida businesspeople who believed they were investing in a Florida grocery-wholesaling business.

Many of the loans came from friends Williams met when he was a Sigma Chi at Ball State University .

Williams, who personally invested more than $10 million in the scheme, received more than $12 million for recruiting more than 60 people who invested $307 million with Capitol, according to a government press release.

Williams, however, was unaware that Shapiro or Capitol was engaged in fraud, the government said.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
ADVERTISEMENT