Allentown Couple Pleads Guilty to 10 Year Old Ponzi Scam
On December 20 2007, Craig H. Reinhard and Debra Bzik, 48, of Allentown, Pennsylvania, pleaded guilty in Federal Court to one count of mail fraud and one count of making false statements to the Securities and Exchange Commission in connection with a Ponzi scheme that they had run for over 10 years that bilked investors out of several million dollars.
The scheme went into effect by August of 1994 and lasted through March, 2006.
The Allentown pair were co-owners of IDPM Group, Inc., a supposed benefit counseling service and insurance agency. Renheid told potential investors, many of whom were elderly, that they were investing in CDs that were federally insured as all CDs are. But the CDs did not even exist.
The pair took the money from new “investors” but, instead of investing it they paid earlier investors and with the substantial amount left over, they financed their own business and personal expense and paid for their children’s college education for their children.
They could see 25 years in jail and $500,000 in fines for their crime.
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