Suburban businessman charged in Ponzi scheme

July 22, 2009 3:31:11 PM PDT
A suburban businessman faces new charges in an alleged multi-million dollar Ponzi scheme.Prosecutors say Frank Castaldi swindled more than 450 investors out of $77 million over a 20 year period.

He was originally charged with one-count of mail fraud earlier this year. A new complaint filed yesterday accuses Castaldi of continually raising funds through the sale of promissory notes to make interest payments to earlier investors.

Prosecutors say he personally guaranteed the safety of his investors' principal, but knew he did not have the cash to make good on that guarantee.