Couple’s Son, Previously Uncharged, now Indicted for Larceny in Alleged $10M Scheme
BOSTON, Sept. 19, 2013—The Suffolk County Grand Jury yesterday returned new indictments charging a West Roxbury man, his wife, their son, and the corporate entity of which they were the sole employees with larceny for allegedly pilfering upward of $10 million from dozens of victims, including seven over the age of 60, Suffolk County District Attorney Daniel F. Conley said.
The latest indictments charge STEVEN PALLADINO (D.O.B. 9/11/57), LORI PALLADINO (D.O.B. 2/17/61), VIKING FINANCIAL GROUP, and – for the first time – GREGORY PALLADINO (D.O.B. 3/7/85) with one count each of larceny over $250 and larceny over $250 from a person over 60. They also charge Steven, Lori, and Gregory Palladino with conspiracy to commit larceny, charge Gregory Palladino with three counts of usury and one count of tampering with evidence, and move an additional recent usury case against Steven Palladino from district court to Suffolk Superior Court.
The new larceny indictments supersede prior indictments against Steven Palladino, Lori Palladino, and Viking, consolidating and streamlining the prosecution of those offenses, which had previously alleged a lesser amount of theft from fewer victims. They also charge Gregory Palladino, who had previously not been charged in the far-reaching fraud investigation.
All told, prosecutors allege that Steven, Lori, and Gregory Palladino used the Viking Financial Group to obtain more than $10 million in investments from some 42 individuals, families, and groups.
“This is among the largest investment scams we’ve seen since Charles Ponzi’s scheme right here in Boston almost 100 years ago,” Conley said. “The losses here are staggering, and many of the victims are ordinary men and women who have seen their assets disappear overnight.”
Prosecutors allege that the defendants told investors their funds would be used to make secured loans to borrowers at a higher interest rate than Viking would pay its investors. Viking would keep the difference, the Palladinos allegedly said, allowing it to make money while providing a high yield, low-risk investment to the investors.
Very little of the money was used to make loans, however, and prosecutors say it instead funded a lavish lifestyle for the Palladinos. Money borrowed from new investors was then used to repay earlier investors and to make monthly interest payments to all of the investors, prosecutors said.
Transactions show that investors’ money was often transferred from Viking’s account into personal accounts held by the Palladinos and used to cover personal expenses including luxury vehicles, a vacation in the Bahamas, rent for Steven Palladino’s mistress, and hundreds of thousands of dollars paid to casinos to cover apparent gambling losses, prosecutors said.
Including today’s indictments, the defendants are charged as follows:
- Steven Palladino: One count each of larceny over $250, larceny over $250 from a person over 60, and conspiracy to commit larceny; two counts each of uttering a false document and tampering with evidence; three counts of making false entry on corporate books; and four counts of usury;
- Lori Palladino: One count each of larceny over $250, larceny over $250 from a person over 60, and conspiracy to commit larceny; two counts each of uttering a false document and tampering with evidence; three counts each of making false entry on corporate books and usury;
- Gregory Palladino: One count each of larceny over $250, larceny over $250 from a person over 60, conspiracy to commit larceny, and tampering with evidence; and three counts of usury; and
- Viking Financial Group: One count each of larceny over $250, larceny over $250 from a person over 60, and tampering with evidence; two counts of uttering; and three counts of usury.
The case was investigated by Assistant District Attorney Benjamin Goldberger of Conley’s Special Prosecutions Unit and detectives assigned to the Boston Police Special Investigations Unit. The defendants are expected to be arraigned on the new charges on Sept. 30 in the Magistrate’s Session of Suffolk Superior Court.
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All defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
