St. Tammany News

Published on Sunday, July 25, 2010 12:21 AM CDT

A Tickfaw man, who ran a Ponzi scheme out of a Covington office for several years, was sentenced to 30 years in prison by U.S. District Judge Lance Africk Thursday.

Matthew B. Pizzolato, 26, was indicted in November 2009 on 64 counts that included mail fraud, wire fraud, money laundering and witness tampering. Federal officials said that since 2005, Pizzolato had run a Ponzi scheme with offices in Covington, Tickfaw and Jefferson Parish in which he promised 160 elderly investors, the majority who lived in St. Tammany Parish, sure-fire investments with huge dividends.

Instead, Pizzolato took the money and spent it on a lavish lifestyle that included expensive cars, mansions, jewelry and trips abroad. In all, he stole over $20 million from the unsuspecting investors.

Things began to unravel in 2007, when suspicious investors contacted the Louisiana Office of Financial Institutions. The office investigated and found the investments to be unusual. Pizzolato continued to do business even after the OFI told him to cease and desist.

OFI turned the case over to the FBI. As authorities got nearer, Pizzolato tried to bribe one of his employees with $20,000 to destroy certain records.

Pizzolato was arrested, and a federal grand jury indicted him. On April 1 of this year, Pizzolato pled guilty to mail fraud, wire fraud, money laundering, securities fraud and witness tampering charges.

Before Africk handed down the 30-year sentence, he told Pizzolato that he had, “stolen from hard working Americans, and swindled the salt of the earth.” The judge said Pizzolato’s actions has forced many of his victims to find ways to “pay for their daily bread.”

After serving the prison sentence, Pizzolato will have to serve three years on probation, and risks more jail time if he violates the terms of his release.