Joseph Greenblatt, 50, who was sentenced in Manhattan Supreme Court, pled guilty back on October 1 for his part in defrauding dozens of retirees, who he convinced to invest in his real estate company, Maywood Capital Corp.
He was also ordered to pay back more than $23 million in restitution to his victims.
Greenblatt has already served seven years as part of a fraud committed against the Department of Housing and Urban Development (HUD). An Orthodox Jew, Greenblatt used his connections in the religious community to convince investors that he could turn enormous profits for them by flipping Manhattan properties.
However, as part of a Ponzi scheme, he actually had the investors putting their money into the same properties repeatedly. He even went so far as to use $2.3 million that he received from investors to pay back money to HUD from his previous conviction.
At the sentencing, the culmination of five years of court appearances, several victims of Greenblatt's fraud sent in statements.
"He knew that when I entrusted this money to him. It [the money] was for the use of my daughter and disabled former spouse," Stephen Coffey, a retiree who lives in Venice, Fla., said in a statement.
"My former spouse, Bonnie, is now receiving money from Social Security, food stamps, and Medicaid. My daughter is medically uninsured because I cannot afford to pay premiums for her health insurance."
Lyle Maldoon, who lives in Nokomis, Fla., another investor defrauded by Greenblatt, requested that the judge put him away for life.
"He should be held away from society for everyday of his remaining life," Maldoon said. "If he ever gets a chance, he will start another Ponzi scheme and hurt many more innocent Americans."
Greenblatt apologized for committing the fraud, stating that it was never his intent to defraud his investors, then was lead away in handcuffs to begin serving his sentence.
Greenblatt will have another court appearance next year in Hackensack, N.J. for additional check fraud charges, stemming from bounced checks to investors worth $1.3 million.
He will likely be to a New Jersey jail in order to face those charges after he is assigned to a prison in New York, which could take several weeks.
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