BOYNTON BEACH MAN CHARGED WITH MAIL FRAUD IN “PONZI” INVESTMENT SCHEME
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, William J. Maddalena, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and J. Thomas Cardwell, Commissioner, State of Florida, Office of Financial Regulation, announce the June 3, 2011 filing of a Criminal Information against defendant Anthony F. Cutaia, 65, of Boynton Beach, Florida. Cutaia made his initial appearance in federal court yesterday before U.S. Magistrate Judge Linnea R. Johnson, and was released on a personal surety bond.
The Information charges Cutaia with nine counts of mail fraud, in violation of Title 18, United States Code, Section, 1341. More specifically, the Information alleges that Cutaia was the managing member and beneficial owner of CMG Property Investment Group, LLC, which purportedly engaged in commercial real estate investment. Cutaia was also the host of “Talk About Mortgages and Real Estate,” a television and radio program.
According to the charges, from March 2003 through December 2006, Cutaia entered into Contract Participation Agreements with investors. These contracts stated that investors’ money would be used solely to purchase real estate contracts in Palm Beach and Broward Counties and that CMG would not collect commissions or fees until the properties were sold and a profit was made. In fact, however, Cutaia allegedly invested little of the investors’ money in real estate and instead used the investors’ money to make payments to pre-existing investors and to pay his own business and personal expenses.
Mr. Ferrer commended the efforts of the FBI and the State of Florida’s Office of Financial Regulation for their efforts in the investigation and prosecution of this case. This case is being prosecuted by Assistant U.S. Attorney Emalyn H. Webber.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.