Oct. 24 (UPI) — The president of a New York investment firm pleaded guilty Friday to running a $54 million Ponzi scheme that defrauded hundreds of investors over nearly three decades, officials said.
Richard Teplitsky, 72 of Williamsville, pleaded guilty to mail fraud in federal court in Buffalo.
Teplitsky was the president of Woodhill Capital Corporation, which promised investors returns of 14% or more by financing loans to businesses purchasing commercial equipment.
Instead, Teplitsky used money from new investors to pay earlier investors, a practice commonly known as a Ponzi scheme.
According to prosecutors, Teplitsky began the scheme in the mid-1990s and continued operating it until March 2026.
To keep the fraud going, he created fake equipment financing agreements and payment schedules to convince investors their money was being used for legitimate business loans.
The company made monthly payments to investors, giving the appearance that the investments were generating returns.
By March, Woodhill owed money to about 200 investors through approximately 1,800 fraudulent loans.
Prosecutors said the scheme resulted in more than $54.4 million in losses.
Teplitsky faces up to 20 years in prison and a $250,000 fine.