NJ wholesaler charged in Ponzi scheme

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November 30, 2010 5:05:03 PM PST
Federal prosecutors have charged a New Jersey-based wholesale merchandiser with running a Ponzi scheme.

Authorities say Jenifer Devine of Fair Lawn allegedly promised investors returns in excess of 200 percent annually if they funded her wholesale clothing and electronics business.

The 39-year-old had no active business, according to prosecutors. They say she used new investments to pay interest to existing investors and fund her own lifestyle.

Prosecutors say at least 15 investors in New Jersey and elsewhere sent Devine over $8 million. They say investors have lost at least $2 million to date.

Devine was released Tuesday on a $250,000 appearance bond.

Her lawyer, Dennis Calo, says she will plead not guilty.