Edward T. Stein was sentenced in New York City federal court to nine years of imprisonment for securities fraud and wire fraud after pleading guilty on June 22, 2009.
Between 1998 to the date of his arrest in April 2009, Stein had been operating a Ponzi scheme under the name of Gemini Fund, which targeted seniors and induced investors to purchase interests in several funds and partnerships that he controlled. Stein promised investors that he would make investments on their behalf and would provide a considerable amount of percentage of profit back. But in reality, Stein used millions of dollars of the investments to make investments in his own name, for personal expenses and to pay “interest” to other investors. The Ponzi scheme was eventually halted in 2009 when a staggering lost surmounted to over $45 million and 100 investors. Some victims of the Stein’s Ponzi even urged Judge Weinstein to prolong the sentence.
