Former head of Cobalt sentenced in $23M fraud case

New York /
Sep.September 22, 2010 07:00 PM

The former owner, president and CEO of Cobalt Financial, was sentenced today in Manhattan Federal Court to three years in prison for his involvement in a fraud that raised more than $23 million from over 250 investors in private placement real estate offerings. William Foster, the former CEO, and co-founders Mark Shapiro and Irving Stitsky founded Cobalt in 2003 and used the firm to acquire and develop multi-family properties throughout the United States. They got people to invest in the company by mispresenting Cobalt’s operating history, failing to reveal that the company was headed by two felons, Shapiro and Stitsky, and falsely claiming to own several properties, according to the U.S. Attorney’s office. Cobalt was headquartered in Massachusetts and had a telemarketing center in Great Neck, NY. In addition to the prison term, Foster, 70, was ordered to pay $22 million in restitution and to forfeit $23 million in proceeds. Stitsky, 55, was sentenced to 85 years in prison in July and Shaprio, 50, is set to be sentenced Oct. 14. TRD

 

Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Northwind's Ran Eliasaf, 125 Greenwich and Bizzi & Partners’ Davide Bizzi
125 Greenwich is back in the game: Supertall condo lands financing
125 Greenwich is back in the game: Supertall condo lands financing
Vornado's Steve Roth with 1540 Broadway
Vornado writes down portfolio by $600M
Vornado writes down portfolio by $600M
Was the mortgage spike real? Applications level off
Was the mortgage spike real? Applications level off
Was the mortgage spike real? Applications level off
99 Washington Street (Google Maps, Getty)
Distressed FiDi Holiday Inn greenlit for migrant shelter
Distressed FiDi Holiday Inn greenlit for migrant shelter
Boston Properties' Owen Thomas (Boston Properties, Getty)
The commercial real estate recession is here: Boston Properties
The commercial real estate recession is here: Boston Properties
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...