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"MINI-MADOFF" CHARGED IN $40 MILLION PONZI SCHEME

Madoff of Brooklyn

A New York City Fund Manager, operating out of a storefront office in the Bay Ridge section of Brooklyn, was accused of bilking investors out of $40 million via a Ponzi scheme. Phillip Barry of the Leverage Group, promised investors returns of 12.55% - 21.00% from investments in stock options. Over time Barry strayed from his investment guidelines and invested customers' capital in everything from real estate to a mail-order pornography business. His real estate investments ranged from an office building in Brooklyn to undeveloped tracts of land up state. Eventually he stopped investing at all and used new investors' cash to pay returns to prior investors. Barry hid his Ponzi scheme from investors by sending them phony financial statements detailing hefty profits that did not exist. (Picture courtesy of Daily News)

Barry ran the scam for over 30 years until the economic crisis caused him to go bankrupt. Investigators learned about it in August 2008 when Barry turned himself into prosecutors. In all, over 800 clients were affected. Some earned profits on their investments while many others lost their life savings. The full article is here: http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6826114.ece

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