A Syosset Ponzi schemer has admitted to bilking more than $30 million from 200 Wall Street investors in a paving stone company and instead using the money to fund his lavish lifestyle.
Eric Aronson, the founder of Permapave Industries, pleaded guilty Friday at Central Islip federal court to securities fraud.
“He pretended to be a legitimate businessmen but he was no more than a common thief,” said Loretta Lynch, U.S. Attorney for the Eastern District of New York. “The defendant caused the financial ruin of many, all the while enriching himself.”
Prosecutors said the 46-year-old scammer issued promissory notes to investors and promised to use the proceeds to finance shipments of the paving stones that were manufactured in Australia from August 2006 to December 2010.
Instead, the con man paid early investors with funds obtained from other defrauded investors that came later. He and his co-conspirators used millions of dollars of investor funds for personal expenses, including vacations, watches, jewelry and automobiles, authorities said.
Aronson faces up to 20 years in prison when he’s sentenced by Judge Gary Brown.