Three Long Island men have been accused of running a Ponzi scheme that ripped off investors in their paving stone import company to the tune of $26 million.
FBI agents arrested the threesome, who were arraigned Thursday at federal court in Central Islip, where the indictment was unsealed charging them with conspiracy, securities fraud and money laundering. The three men pleaded not guilty.
The suspects include Eric Aronson, 43, of Syosset; Vincent Buonauro, 40, of West Islip; and Fredric Aaron, 48, of Plainview.
“They promised a sound investment in a quality product but instead shuttled the investors from one deceptive securities offering to another in an attempt to maintain their house of cards,” said Loretta Lynch, U.S. Attorney for the Eastern District of New York.
Prosecutors said the trio promised to repay investors in Permapave Industries, which imported paving stones manufactured in Australia. Instead, more than $3 million of investor funds were allegedly used for personal expenses.
The expenses included home mortgage payments, down payment on a residence, automobile payments and credit card purchases for watches, jewelry, clothing, vacation resorts and air travel, prosecutors said.
Kevin Keating, the Garden City-based attorney representing Aronson, said his client and never should have been charged.
“He was an attorney who performed legal services and was paid a modest legal fee,” Keating said. “He had no involvement in the alleged underlying fraud and made none of the millions allegedly earned by the others.”
Marc Gottlieb, the Mahattan-based attorney for Buonauro, said he is sorry if any clients lost money, but there are a lot of allegations in the case that he believes are not accurate.
“There are a lot of facts and circumstances that are not contained in the government’s case,” Gottlieb said.
Aaron’s attorney was not immediately available for comment. The three men face up to 20 years’ imprisonment if convicted.
