Frank Castaldi, Prospect Heights, IL, pleaded guilty to running a Ponzi Scheme for more than 20 years. More than 450 investors lost more than $77,000,000 in this fraudulent investment scam.
Castaldi convinced investors to invest in six month promissory notes that had yields of 10% to 15% and little or no risk. He also represented he would personally guarantee the principal amounts even though he had no assets to back the guarantee. He often referred to the notes as CDs and stated they were insured for up to $250,000.
His scam succeeded for two decades because he offered the two investment characteristics that investors crave the most: high returns and no risk. One person described the victims’ experience with Castaldi as “We are simply people who trusted someone that we thought was really, really smart and knew a lot about investment.”
He also described Castaldi’s personal approach: “We would go to his office and he would give us a kiss each and every time. He knew and asked about our kids. He was invited to our kids weddings, our anniversary and birthday parties. He was a family guy. He knew everyone
He also described Castaldi’s personal approach: “We would go to his office and he would give us a kiss each and every time. He knew and asked about our kids. He was invited to our kids weddings, our anniversary and birthday parties. He was a family guy. He knew everyone’s financial situations because he was the neighborhood tax guy. He approached us about this investment opportunity because he said he wanted to help us out because we are like family.
Most people have a hard time believing someone they like and trust will take advantage of them for money. Unfortunately, the bad guys know this.
Im writing this in despair, hoping someone will care about hundreds of people (majority of which are in their 80s) whos lives have been torn apart by Frank Castaldi, our own little ponzi devil. I wrote when this first happened on Jan 23, 2009. I need to tell you what has and has not happened.
I understand this isnt New York and Madoff but you need to know this is WORSE. I/we knew everything that was going on with Madoff from the news. Why isnt this as important? Frank Castaldi did this not to strangers, famous people and corporations, but to family and friends. People who loved and trusted him. He has destroyed not only our lives but our childrens lives as well. Not to mention his own children.
You see, things are no easier today than they were back in January. There is no one reaching out to us offering any type of assistance or guidance, whether it be mental, financial or information. Where the heck are all the Chicago politicians having their fit about how WE have been taken? These elderly people have NO money and no way to regain any of it in their life time. Some of these people have no money for FOOD.
Frank Castaldi pleaded GUILTY in August. Only 2 counts were actually brought against him (????) We have been indirectly told that the reason for this is because he has been the ideal defendant. Saved the government a lot of time and money. (As long as the government is saving money, this should be ok to the victims?) It has also been mentioned several times that he surrendered. Is that suppose to be a good thing? Logically, it only means that he had TIME to plan this supposed surrender. Not a good thing at all. The judge allowed him to remain out on bond (recognizance) . He claims there is no money left from the 77 million dollars he took. He also admitted that his father, George Castaldi, taught him how to do this when he worked for him in high school. His father began doing this in 1968. Long time. (continued)
By the way, George Castaldi has not been arrested or as far as we know, even questioned. He could have been, but we are not privy to that information.
His sentencing was scheduled for Dec. 9. Well he requested an extension and was immediately granted one until Feb 18. Why? We really just want to know why. How can a person admit to stealing 77 million dollars, defrauding the IRS for 30 years and destroying 500 lives and get granted an extension without question? I cannot even comprehend that. What in world kind of laws do we have?
We know we will never get a penny back from him. All we have is the hope to see him taken away in handcuffs for a very long time. That is ALL we have. It seems that this will be going on for a very long time. It is inhumane to do this to us. At this point we just want it over. Dont we at least deserve that?
I have been told that there will most likely be future extensions. And most likely they will also be granted. Please, can someone tell me why this system works like this? This is the government and the laws that we are suppose to brag about to other countries? We want everyone to adapt to our laws because they are fair and good? I be to differ. Unless you are unfortunate enough to have to live through this, you have no idea how unfair our laws are.
Please, we need someone who has a stronger, more visible voice than us to speak. No one cares about us, we are just regular folks, nobody important. Frank Castaldi and his father have played this system for the last 40 years. They are still playing the system. Only now, the government knows and allows it. It is no longer hidden.
My hope for this letter is that maybe it will result in a story. A story so people will keep an eye on what is being done and how this is being handled. We need a watch dog. We need help.