A son-in-law of former New York Assembly Speaker Sheldon Silver was charged with defrauding investors out of $7 million in a Ponzi scheme, according to a federal complaint.
Marcello Trebitsch appeared in court in Manhattan on Monday night on one count of wire fraud and one count of securities fraud. He was released on bond. If convicted, he faces up to 20 years in prison and a $5 million fine.
He is married to Michelle Trebitsch, Silver’s daughter. The former Democrat powerbroker stepped down from his leadership position after being indicted on corruption charges in January.
U.S. Attorney Preet Bharara said in a statement that Marcello Trebitsch, 37, of Brooklyn, told investors he would use their money to trade in securities through his investment fund and promised them double-digit returns with low risk. But only a portion of the money was invested and Trebitsch used the remainder for his own personal benefit and to repay other investors, the complaint said.