A West Roxbury couple and their son accused of operating a Ponzi scheme and bilking investors out of more than $10 million were arraigned on further charges that reflect more victims and greater losses, Suffolk District Attorney Daniel F. Conley announced.
Steven Palladino, 56, Lori Palladino, 52, and Gregory Palladino, 28, were arraigned in Suffolk Superior Court last Friday on one count each of larceny over $250, larceny over $250 from a person over 60. They were each additionally charged with conspiracy to commit larceny. Gregory Palladino faced additional charges of withholding evidence and three counts of usury.
In addition to the charges the defendants were arraigned on last week, Steven Palladino, Lori Palladino and Viking Financial Group each faced earlier charges related to the same Ponzi scheme. The current indictment supersedes the earlier larceny indictments and charges Gregory Palladino for the first time for his alleged role in the scheme.
The earlier indictment charged Steven and Lori Palladino with two counts each of uttering a false document and tampering with evidence and three counts each of making false entry on corporate books and usury. Steven Palladino was additionally charged as a common and notorious thief. Viking was charged with one count of tampering with evidence, two counts of uttering, and three counts of usury.
According to prosecutors, the Palladinos operated a Ponzi scheme through their company, Viking Financial Group, which Lori and Gregory Palladino incorporated in 2007.
Prosecutors said the Palladinos borrowed money from investors who believed the funds would be used to provide high-interest loans. Very little of that money was used to make loans, however, and the loans that were made often bore interest rates above the maximum 20 percent interest rate allowed under state law, prosecutors alleged. Steven and Lori Palladino then entered fake loans into Viking’s corporate books to make them appear balanced, authorities said.
In all, prosecutors allege that the defendants defrauded 42 individuals, families, and groups of between $10 million and $13.8 million. The Palladinos transferred those funds from corporate accounts into private accounts and using it to fund a lavish lifestyle, including luxury vehicles, a vacation to the Bahamas, and casino trips resulting in apparent gambling losses totaling hundreds of thousands of dollars, prosecutors said.
All three are due back in court on Dec. 8.
