State News
NYC man gets 6 years in $33M Ponzi scheme
ROCHESTER, N.Y. — An investment fund manager drew a reduced six-year prison sentence Friday in a $33 million Ponzi scheme that cheated 27 investors in the United States, Germany and Costa Rica.
John Montana, 57, of Staten Island was one of four people convicted of conspiracy, fraud and money laundering in the two-year scam. At least $13.6 million has not been returned to investors defrauded between July 1999 to July 2001, federal prosecutors say.
“I’m nothing more than a small business owner seeking the American dream,” Montana said before his sentencing. He told the judge he was gullible but “never intended to lead anybody to any harm.”
To which, U.S. District Judge Charles Siragusa countered: “You certainly committed this crime. To suggest that you were duped ... I don’t believe you.”
Even so, the judge took into account Montana’s lack of a prior conviction and his devotion to his family in deviating from a recommended eight-to-10-year sentence under federal court guidelines. The judge also granted bail, giving Montana until Jan. 8 to surrender to prison authorities.
Montana was ordered to make restitution to the victims, some of whom lost their entire life savings. Two investors lived in Germany and Costa Rica, the others in California, Florida, Oklahoma, Oregon, Michigan, Mississippi, New York and Washington state.
Gail Eldridge of Marietta, Ga., drew a 20-year sentence last month; Paul Knight of Kodak, Tenn., got 14 years Wednesday and Mervyn Lyttle of Aurora, Ill., is to be sentenced Feb. 17.
Prosecutors say the group solicited investments by promoting a secret “high-yield investment program” involving the world’s largest banks. The scheme falsely promised investors extraordinarily high rates of return — some as high as 30 percent a week.
As much as $20 million was returned to investors who complained about their losses or threatened legal action. Others were lulled by false promises and threats of $5 million forfeitures into maintaining their investments and agreeing not to contact authorities, prosecutors say.
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Earl threatens East Coast with weekend pounding
Hurricane Earl packed winds near 125 mph as it blew toward North Carolina on Thursday, putting the Eastern Seaboard all the way to Canada on alert for a Labor Day weekend pounding by waves, gales and rain.
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Bernanke: Shut down banks if they threaten system
Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system.
“If the crisis has a single lesson, it is that the too-big-to-fail problem must be solved,” Bernanke said Thursday while testifying before the Financial Crisis Inquiry Commission. -
Oh snap! New baby carrot campaign mimics junk food
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A group of 50 producers hopes the ‘Eat ’Em Like Junk Food’ effort starting next week will double the $1 billion market in two or three years. -
NASA studies conditions that make storms intensify
NASA scientists are flying into Hurricane Earl to gather data about what makes some tropical storms intensify while others fizzle.
The flight is part of a six-week NASA research mission to collect information that could help forecasters accurately predict how strong a hurricane will be. -
Oil sheen spreading from Gulf platform explosion
A mile-long oil sheen spread Thursday from an offshore petroleum platform burning in the Gulf of Mexico off Lousiana, west of the site of BP’s massive spill.
Coast Guard Petty Officer Bill Coklough said the sheen, about 100 feet wide, was spotted near the platform owned by Houston-based Mariner Energy Inc. -
Ole Miss begins football season without new mascot
A yellow-beaked bird known as “Cocky” will be the only mascot on the sidelines when the Mississippi Rebels take the football field Saturday in Oxford, and he’s rooting for the other team.
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Earl threatens East Coast with weekend pounding
Hurricane Earl packed winds near 140 mph as it blew toward North Carolina on Thursday, putting the Eastern Seaboard up to Maine on alert for a Labor Day weekend pounding by waves, gales and rain.
A hurricane warning for the tip of Massachusetts, including Nantucket and Martha’s Vineyard, joined earlier warnings and watches for hurricanes or tropical storms that stretch from North Carolina up to near the Canadian border. -
Unemployment claims drop for second straight week
The number of people requesting unemployment benefits declined for the second straight week, suggesting that the slowing economy isn’t prompting widespread job cuts.
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Clinton opens new round of Mideast peace talks
Secretary of State Hillary Rodham Clinton formally opened the first direct peace talks between Israel and the Palestinians in nearly two years on Thursday, imploring the parties to make needed compromises to forge an agreement.
At a ceremony in the State Department’s ornate Benjamin Franklin room, Clinton said the Obama administration was committed to bringing about a settlement in a year’s time. But she stressed that after decades of failed attempts, the heavy lifting must be done by Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas. -
Bernanke: Shut down banks if they threaten system
Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system.
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