A second defendant has been added to an indictment in the U.S. District Court for the Northern District of Illinois stemming from a Ponzi scheme that fraudulently obtained $105 million in investments from about 400 victims, leading to $34 million in losses.andnbsp;
The newly added defendant, Alfred Gerebizza, and his co-defendant Daniel Spitzer allegedly misappropriated money raised from investors for funds they said they operated from the U.S. Virgin Islands.
The superseding indictment seeks forfeiture against both defendants of roughly $34 million.
Each count of mail fraud carries a penalty of up to 20 years in prison and a $250,000 fine.
The two defendants sold memberships and limited partnership interests in the various Kenzie Funds to the public.
They also claimed that that the Kenzie Funds had never lost money, and that they had historically posted good returns.