South Jersey Man Charged With Running Real Estate Ponzi Scheme
By David Madden
GLOUCESTER CITY, N.J. (CBS) - Federal prosecutors have charged a Gloucester County man of running a real estate ponzi scheme that allegedly netted him over $3-million.
Randy Poulson, 42, of Woolwich Township, N.J. is accused of convincing more than two dozen homeowners in arrears on their mortgages to turn their properties over to him.
Then, he got over 50 investors to pony up money to fix up, rent and eventually re-sell those properties.
Assistant US Attorney Stephen Stigall says some investors got some money back. Most didn't.
"All of the promises made, allegedly, were to rehab, fix up etc. But in reality, what Mr. Poulson did was he spent the money on himself."
For day care, a house down the shore, even pizza for his family.
Poulson's attorney did not respond to a call seeking comment.