Massachusetts man charged in $8 million Ponzi scheme

CHICAGO (BestGrowthStock) – A Massachusetts man was charged with engaging in a Ponzi-style investment fraud scheme, swindling nearly $8 million from more than 50 victims, Chicago federal prosecutors announced on Monday.

Randy M. Cho, 39, of Newton, Massachusetts, held himself out to be a self-employed securities trader, who, from about 2001 to 2009, lived and worked at various times in Chicago, Seattle, Boston and Newton, according to the office of U.S. Attorney Patrick J. Fitzgerald.

Cho falsely told investors he could purchase specially discounted shares of stock in well-known companies, such as Facebook, Inc., prior to their initial public offerings, prosecutors say.

For example, Cho allegedly induced one victim to invest about $20,000 by claiming he had Google stock available to sell for $1 per share, when in fact Cho knew Google was trading at $425 per share or more.

Cho is charged with wire fraud and filing a false federal income tax return. An attorney for Cho was not immediately available for comment.

(Writing by Mary Wisniewski; Editing by Jerry Norton)

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Massachusetts man charged in $8 million Ponzi scheme