Federal Judge Plans to Sentence Financier to 20 Years
A federal judge in New York plans to sentence financier Steven Hoffenberg, accused of masterminding the biggest financial swindle in U.S. history, to 20 years in prison and order him to pay $476 million in restitution.
U.S. District Judge Robert Sweet said in an opinion made public Wednesday that he plans to sentence Hoffenberg on Friday for causing thousands of victims to lose half a billion dollars.
Hoffenberg, 52, had headed Towers Financial Corp., a bill-collection business that filed for bankruptcy protection from creditors in 1993 after it was discovered that the flamboyant financier was using the company to operate what prosecutors called the largest Ponzi scheme ever in the U.S.
Hoffenberg, who gained attention when he offered to rescue the New York Post in January 1993, pleaded guilty to conspiracy and fraud charges in April 1995.
He recently asked to withdraw the plea, claiming he was mentally unfit when he admitted to the fraud. Sweet denied his request.
The judge said that subject to Friday’s hearing, he plans to sentence Hoffenberg to the prison term and order him to make restitution of $475.1 million and pay a fine of $1 million.
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