Michael S. Goldberg pled guilty to three counts of wire fraud
stemming from his operation of a $100 million Ponzi scheme that was said to
involve diamonds, according to a Dec. 7 release from the United States
Attorney’s Office District of Connecticut.
According to the release, Goldberg solicited money from
investors purportedly to purchase diamonds at extremely low prices from vendors
in New York City and then resell those diamonds immediately at a substantial
profit. He said the profits from
the resale of the diamonds would enable him to pay investors a 20 to 25 percent
return on investment every 60 to 90 days.
When he pleaded guilty, Goldberg admitted that his
representations were false, and that, aside from a brief period in 1997, he did
not purchase diamonds in New York City or any other location.