Attorney indicted for alleged $4M real estate Ponzi scheme

October 17, 2013 03:51PM

A disbarred New York City attorney stands accused of swindling $4 million from investors who thought she was putting their money into buying up foreclosed homes.

Alice Belmonte allegedly convinced 10 people to buy into her plan to acquire Real Estate Owned listings, or REOs, but instead of putting their funds into an escrow account, she reimbursed prior investors in her Ponzi scheme, according to Manhattan District Attorney Cyrus Vance.

Belmonte was indicted on 49 counts ranging from grand larceny to identity theft.

“This lawyer mortgaged her future,” Vance said in a release. “Attorneys have a responsibility to be trustworthy and honest with their clients, and stealing from them for personal enrichment is an embarrassment to our profession.” — Julie Strickland