Former Colts Neck Resident Charged in $18M Ponzi Scheme

A former Colts Neck resident is accused of operating an $18 million Ponzi scheme that victimized New Jersey residents, U.S. Attorney Paul J. Fishman announced Monday.

Louis J. Spina, 56, who now lives in Miami, Fla., allegedly collected the funds from 28 investors between August 2010 and November 2013. Authorities say he told investors they could expect 9 to 14 percent monthly returns through his business, LJS Trading LLC. 

He only transferred $8 million of the investor funds to a trading account, which he then lost in unsuccessful trading, according to the press release. He allegedly used the remaining $10 million to pay the investors’ monthly interest payments, to return portions of some investors’ principals, and to pay for his own personal expenses, including car purchases, luxury apartment rental payments, and a $400,000 donation to a private university.

Spina was charged with one count of wire fraud, which carries a prison term of 20 years and a $250,000 fine if convicted.