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Is this Impressive - $658M Ponzi Scheme
#2 All Forums Contributor
- Investor
- Virginia
First let me start out by saying I have a hard enough time remembering the truth, but wow - this was one heck of a ponzi scheme. Why am I posting this:
1. This was done in 2018 - 2022, when real estate was doing very well. So it does not matter during good or bad times, bad actors are bad actors.
2. This was not a new company. According to Linkedin and the profile of one of the individuals Rey Grabato, the company was founded in 2006, NRIA has grown to be one of the nation’s leading specialists in institutional-caliber private real estate investment management with over $1.25B AUM*, focusing on luxury townhome, condominium and multifamily acquisition and development in many supply constrained, high barrier-to-entry markets along the east coast.
So what could have investors done in this instance? Honestly most likely nothing. Sometimes it is impossible to determine if a company has a bad actor, and their intentions may not have started that way and something could have changed.
One final comment I want to make, not every deal that goes bad is fraud or a ponzi scheme.
District of New Jersey | Leader of Real Estate Investment Firm Admits Role in $658 Million Ponzi Scheme and Multimillion-Dollar Tax Evasion Conspiracy | United States Department of Justice
