Tampa Bay Business Journal
A Largo man convicted nearly 20 years ago of wire fraud and money-laundering charges has been arrested and faces new charges of wire fraud.
Michael Greenberg is accused of defrauding more than 30 individuals, financial institutions, his own family and the U.S. Small Business Administration, according to a release from the U.S. Attorney’s office for the Middle District of Florida.
Greenberg incorporated a company called Pure Class Inc. in 1998, two years after he was released from federal prison on his earlier conviction. In connection with the business, he obtained an automobile dealer’s license without disclosing his federal felony conviction, according to a criminal complaint filed in the U.S. District Court for the Middle District of Florida.
He then made false promises to induce people, businesses and banks to give him money in a Ponzi-style scheme, the complaint said. He received more than $53 million, with the scheme causing losses of about $24.6 million, the complaint said.
One of the financial institutions cited in the complaint is Patriot Bank of Trinity, which allegedly lost $915,000 to Greenberg. Other banks that allegedly lost money in the scheme were Wachovia Bank with a loss of $245,137 and Fifth Third Bank with a loss of $133,393.
Ronald Giglio, described as a corporate officer for SimDag Properties LLC, was defrauded of $1 million, the complaint said. SimDag was the developer of the failed Trump Tower Tampa project. Additionally, the office manager of the law firm Brad Souders PA, a civil trial litigation firm in Tampa, used the law firm’s equity line of credit to invest money in Greenberg’s scheme, resulting in a loss of $119,770, the complaint said.
If convicted, Greenberg faces up to 30 years in federal prison, the release said.
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