Monday, December 05, 2011

Newman pleads guilty to theft, fraud and forgery 

The Hampstead man who swindled millions from Orthodox Jews to fund his lavish lifestyle is now in jail.
Perry Newman pleaded guilty to all nine charges of theft, fraud and forgery and on Nov. 30 was sentenced to five years in prison.
Newman stole in excess of $6 million from his clients as he represented himself as a financial planner. His largest client was Edith Olanoff, originally from New York and now living in Israel.
She met Newman in 2005 through a Manhattan accountant and was only informed in May 2010 by the FBI that documents sent to her every month purporting to be statements from a reputable securities firm were forgeries.
"Imagine my shock when I found out that Newman never made a single investment and that all the statements from the last five and a half years showing my treasury bonds and interest were forgeries," Olanoff told The Gazette.
Newman travelled extensively, six vacations a year to Mexico, California, Europe and Miami, sent his sons to expensive American colleges and paid for large weddings in the years he had control of Olanoff's money. He purchased jewellry for his wife and donated to charity on a grand scale.


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