Partly Cloudy
59°FPartly CloudyFull Forecast

Trial set to begin for Rockford Ponzi scheme

Published: Monday, Sept. 23, 2013 7:26 a.m. CDT

ROCKFORD — A federal trial is set to begin in Rockford for a one-time CEO who's accused of running a Ponzi scheme that authorities say cost investors $20 million.

The Rockford Register Star reports Anthony D'Agostino's trial is set to begin Monday. He bought Commercial Mortgage & Finance in 1997. He was charged with mail, wire and securities fraud in December.

Prosecutors say the business lost money every year it was operated by D'Agostino. They say he lied about the health of the company in order to get new investors.

But his attorney, Scott Lassar, says the firm went under because of a "run on the bank" during the Great Recession.

The company collapsed in 2008 and had 1,400 investors who authorities say were owed more than $63 million.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Northwest Herald.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Reader Poll

What's your favorite pumpkin-flavored item?
Coffee
Beer
Pie
Pastries/bread
Other