NEWARK, N.J. — A federal grand jury here has indicted the former owner and chief executive of Capitol Investments Inc. for allegedly leading an $880 million Ponzi scheme related to a bogus grocery wholesaling business.
As previously reported, Nevin K. Shapiro, founder and president of Capitol, told investors he ran a grocery diverting business that purchased low-priced groceries in one region and resold them in another where prices were higher, according to the charges. He produced fake documents including sales reports and financial statements, and used investments to fund a “lavish lifestyle” in Miami, federal authorities said. Capitol declared bankruptcy last year.