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Judgements Awards & SettlementsPingatore victim of Ponzi schemeChicago Suntimes, September 21, 2010 BY MATT HANLEY – BEACON-NEWS White far west suburban investment broker has been accused of defrauding friends and associates through a Ponzi scheme of more than $1.4 million — including $500,000 from legendary St. Joseph basketball coach Gene Pingatore — and that total loss to investors could rise into the tens of millions of dollars. The suit comes just after an Aug. 27 complaint by the Illinois Securities Department, which suspended Norkus’ business under allegations he promised guaranteed earnings, then failed to deliver. Lawyers working with dozens of people who claim to be Norkus’ victims say the total losses could reach $50 million. "This is a flim-flam game that has been going on for a long time," said John Burke, a St. Charles attorney working with dozens of alleged victims. Pingatore, who coached NBA star Isiah Thomas as well as Evan Turner, the No. 2 pick of the 2010 NBA Draft, as preps and has the most wins in state history, said Tuesday he lost $500,000 to Norkus. Norkus asked Pingatore to buy a five-year promissory note in 2007, according to the lawsuit. The note was supposed to pay 13.5 percent interest annually. Pingatore continued to invest in more promissory notes as Norkus promised they would make him a millionaire. Pingatore had known Norkus for more than 40 years. Pingatore said they were friends, and he attended Norkus’ daughter’s wedding. Pingatore had invested with Norkus throughout that time, without problems. The first red flags came about two months ago, when Pingatore tried get $15,000 out and Norkus balked, the coach said. "I thought, why is he giving me a hard time about this $15,000?" Pingatore said. "Now, going back, he probably didn’t have it." |
