Glen Rock Man Indicted in $4 Million Scheme

A Newark grand jury indicted Glen Rock resident George Sepero, 39, on 16 counts of wire fraud and one count of wire fraud conspiracy for his involement in a Ponzi scheme Monday, according to U.S. Attorney Paul J. Fishman.

Authorities allege Sepero and his co-sonspirators defrauded victims out of more than $4 million since 2009 by claiming to have a "secret computer program" for investing in foreign currency. One investor reportedly lost more than $2 million in the scheme which allegedly promised returns of more than 170 percent.

Sepero also defrauded an elderly woman of her life savings in a separate incident, according to Fishman.

In reality, Sepero and the others were investing very little money and spending the bulk on expensive cars, luxury vacations and bar tabs of more than $18,000, according to authorities. Sepero leased a BMW and bought both a Mini Cooper and an $80,000 customized Ford F-350 “Harley-Davidson Edition” pickup truck. He was also using the money to pay for home improvements and mortgage payments, among other expenses. The monthly credit card bills of the co-conspirators averaged about $25,000, Fishman said.

FBI agents arrested Sepero and 29-year-old Garfield resident Carmelo Provenzano for the scheme last December. The two face two decades behind bars, authorities said.

Prosecutors claim the fake hedge funds Sepero and other operated include Pelt Capital, Caxton Capital Management, SP Investors Inc. and CCP Pro Consulting Inc.

In a previous announcement, authorities said Sepero and his co-conspirators furthered the scheme with fake emails to their victims. They even created a fictional character for the emails, authorities said.