La. Businessman Indicted In Alleged Ponzi Scheme

MICHAEL KUNZELMAN

NEW ORLEANS (AP) — A Louisiana businessman was charged Friday with engaging in a Ponzi scheme to defraud about 160 investors — mostly elderly people — out of roughly $19.5 million and using some of the money to pay for cars, cruises, sports tickets and a house.

A federal grand jury indicted Matthew B. Pizzolato, 26, of Tickfaw, on charges that include securities fraud, money laundering and obstruction of justice. FBI agents arrested Pizzolato in Hammond about an hour after the grand jury handed up its 64-count indictment.

Pizzolato had offices in Baton Rouge, Covington, Hammond and Lake Charles from 2005-2008 and advertised investment services under several company names, including Gulf Region Guaranty Inc., the indictment said.

Pizzolato allegedly promised rates of return that were higher than market rates for certificates of deposit or treasury bills. He also promised investors their money was protected against losses, but he used it in high-risk futures trading and other risky ventures that investors didn't authorize, according to the indictment.

A lawyer for Pizzolato didn't immediately return a call for comment Friday.

Pizzolato spent most of the money he raised from investors, including about $600,000 for the construction of a home in Ponchatoula, authorities said.

On Thursday, another Ponchatoula resident was charged in a separate case with defrauding at least 200 investors of $11 million in what state authorities described as a Ponzi scheme. William J. Chaucer Jr., 60, of Ponchatoula, was booked into a Tangipahoa Parish jail on state charges that included felony theft and selling unregistered securities.