N.J. Developer Is Charged In Long-Running Ponzi Scam, Feds Say
Federal regulators have charged David M. Connolly, a New Jersey real estate developer, with operating a long-running Ponzi scheme that gathered millions from investors who thought they were buying into apartment complex projects. The Securities and Exchange Commission said Connolly began offering investments in 1996 and eventually raised $50 million, but misrepresented the nature of his projects to investors and paid himself more than $2 million along the way. He is also charged with commingling investment funds with his personal accounts, and writing more than $2.5 million worth of checks to “cash,” the SEC said. Properties owned by his investment ventures eventually slipped into foreclosure, leaving investors stranded, the government alleges.