Ponzi Record

United States ยท January 2005 to November 2009, according to the FBI

Capitol Investments USA grocery distribution investments

The FBI said Shapiro induced people to invest in what they believed was his wholesale grocery distribution business, that Capitol had virtually no income generating business, and that he paid existing investors with new investors' money while others created false financial statements and invoices.1

Losses as statedThe FBI said about $930 million was solicited, that Capitol owed more than $100 million to investors when it went bankrupt in November 2009, and that more than $35 million of investor funds were used for Shapiro's personal benefit.1
Victims as statedMore than 50 victim investors, according to Shapiro's admission as described by the FBI.
Recovered for investorsNot confirmed in the sources reviewed.

People and outcomes

Nevin Shapiro

Pleaded guilty before Judge Susan D. Wigenton to one count of securities fraud and one count of money laundering. Sentenced on 7 June 2011 to 20 years in prison and three years of supervised release, and ordered to pay restitution of $82,657,362.29. He had been moved to home confinement in 2020, and President Biden commuted his sentence in December 2024 as part of a group of about 1,500 commutations, NBC Miami and Sportico reported on 13 December 2024. The commutation did not erase the conviction, Sportico reported. The Federal Bureau of Prisons inmate locator lists him as released on 20 December 2024.1,2,3,4

Response: According to the FBI, Shapiro admitted that more than 50 victim investors lost between $50 million and $100 million. After the commutation he called it a "good day", NBC Miami reported, and Sportico reported that he said he "never stopped thinking about my victims."1,2,3

Timeline

  1. Capitol Investments goes bankrupt.1
  2. Shapiro sentenced to 20 years in prison.1
  3. President Biden commutes Shapiro's sentence, NBC Miami and Sportico report.2,3
  4. Released, according to the Bureau of Prisons inmate locator.4

Sources

  1. FBI Newark, CEO of Capitol Investments USA Inc. sentenced to 20 years in prison for $930 million Ponzi scheme based on phony grocery business (7 June 2011)
  2. NBC Miami, Biden commutes sentence for ex-UM booster and $930M Ponzi schemer Nevin Shapiro (13 December 2024)
  3. Sportico, Biden grants clemency to Nevin Shapiro (13 December 2024)
  4. Federal Bureau of Prisons, Inmate locator record, Nevin Shapiro, register number 61311-050 (28 October 2026)