Sheldon Silver’s Son-in-Law Arrested and Charged in $7 Million Fraud
Trebitsch, 37, is accused of telling investors he would use their money to trade in securities through his investment fund Allese Capital. He promised double-digit returns with low risks.
Only a fragment of the money was invested and the remainder was used by Trebitsch for his own use and to repay other investors, according to a statement from the office of Preet Bharara, U.S. attorney for the Southern District of New York.
The money Trebitsch invested suffered losses, which he covered up by sending fake monthly account statements and tax forms showing returns reaching up to 19 percent.
Trebitsch, a certified public accountant, was released on bond after appearing in a federal court in Manhattan and was charged on one count of wire fraud and one count of securities fraud. He faces up to 20 years imprisonment and a $5 million fine.
Michelle Trebitsch, wife of Trebitsch and co-owner and managing partner of the investment fund, has not been charged.
She is the daughter of former New York Assembly Speaker Silver, who surrendered to F.B.I. agents in January after he was indicted on corruption charges. He vacated his post one week after the arrest.
