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So. Fla. Ponzi Schemers Take Guilty Plea In N.J.

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NEWARK, New Jersey – Two men connected to a major Ponzi scheme in South Florida faced a federal court judge in Newark Monday.

The father Roberto Torres and his son Alejandro, who had lived in Boca Raton, pleaded guilty to one count of securities fraud.

Torres served as the chief financial officer for the Florida-based Capitol Investments USA, while his son served as an accountant for the company.

Nevin Shapiro who oversaw Capitol Investments pleaded guilty last fall to securities fraud and money laundering.

Shapiro told investors they were using the money to invest in a wholesale grocery distribution business and prosecutors say that story helped him raise $900 million.

Prosecutors say he simply took $23 million in salary and commissions and invested in enriching himself with a mansion, luxury cars and courtside seats at Miami Heat basketball games.

(©2011 CBS Local Media, a division of CBS Radio Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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