Son of BFG Founder Indicted

Federal prosecutors on Thursday charged Patrick Bennett, son of the founder of Bennett Funding Group Inc., with being primarily responsible for a Ponzi scheme that bilked investors out of more than $700 million.

The indictment alleges that after the fraud was committed, Patrick and his brother Michael backdated documents and lied to the Securities and Exchange Commission to cover up the crime.

BFG was for many years a staid family firm in Syracuse, N.Y., that leased office equipment and then sold interests in those leases to investors. Prosecutors said Patrick Bennett squandered investors’ money on himself and on wildly speculative personal investments.

Bennett’s attorney, Michael Auerbach, said he could not comment because he had not seen the charges.

Officials declined to comment on whether prosecutors are pursuing Bud and Kathleen Bennett, the parents of Michael and Patrick.