Politics & Government

Ponzi Scheme Defendant Tried to Collect Illegal 40% Interest, Arrested in '12 Mercedes Coupe

On Tuesday when Boston Police stopped Palladino, his pockets were filled with wads of cash totaling $4,395 and a check to his indicted company, the Viking Financial Group, for $3,499.47.


Police apprehended a West Roxbury man indicted and accused of running a multi-million Ponzi Scheme in his 2012 Mercedes CLS 63 AMG Coupe at a West Roxbury gas station on Tuesday. On Wednesday, Steven Palladino was arraigned on new charges for allegedly demanding an illegal 40% interest rate on a loan his company made to a businesswoman. 

On Tuesday when Boston Police stopped Palladino, his pockets were filled with wads of cash totaling $4,395 and a check to his indicted company, the Viking Financial Group, for $3,499.47.

Steven Palladino was arraigned in West Roxbury District Court on one count of usury, commonly known as loan sharking, according to a press release from Suffolk County District Attorney Daniel Conley.

The charge stems from Palladino allegedly contacting a Franklin woman repeatedly by voicemail and text messages to seek a $30,000 payment on a $25,000 loan the woman received in February. That rate on a 6-month-old loan equals a 40% annual percentage rate, or double the maximum allowed under Massachusetts law, said prosecutors.

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ADA Benjamin Goldberger asked that Palladino’s open bail on more than a dozen indicted charges be revoked and that he be held on $25,000 cash bail on the new charges. Judge Michael Coyne took no action on the motion to revoke, but did impose the requested cash bail. Palladino paid $250,000 bail earlier this year and is wearing a court-appointed GPS ankle bracelet while still living in West Roxbury.

Palladino and his wife, Lori, are each charged with five counts of larceny of more than $250, three counts of making false entries in corporate books, two counts of uttering, three counts of usury, and two counts of tampering with evidence. Steven has also been charged as a "common and notorious thief" based on more than two dozen prior larceny convictions in Suffolk Superior and Norfolk Superior courts.

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Prosecutors allege the defendants utilized the Viking Financial Group, which was based on Centre Street, has also been indicted as a corporate entity "to borrow money from investors that often went to the Palladinos’ personal bank accounts and funded their own lavish lifestyle." Prosecutors allege money from new investors was used to repay earlier investors and make monthly payments to all of the investors.

When Viking did loan out money, prosecutors said, it was often at illegally high interest rates, including one case of 200%. 

In the latest case, Viking allegedly paid two checks in February totaling $25,000 to a Franklin woman who co-owns a construction company. On Aug. 11, well after the Palladinos had been arrested and indicted, Steven allegedly began calling and texting the loan recipient, claiming that the loan was due on Aug. 1 and demanding $30,000 in repayment.

The victim contacted Boston Police, who on Tuesday apprehended Palladino in his 2012 Mercedes CLS 63 AMG Coupe at a West Roxbury gas station. The aforementioned cash in his pockets totaled $4,395 and a check to the Viking Financial Group for $3,499.47.

The Suffolk County Grand Jury returned indictments charging the Palladinos on March 13 and March 21. On April 30, the US Securities and Exchange Commission obtained a temporary restraining order freezing Steven Palladino’s assets. 

At some point after that order, he allegedly transferred the titles of three motor vehicles, including two purchased with proceeds from the alleged Ponzi scheme, from his name or the names of Steven and Lori Palladino jointly to that of Lori Palladino alone at a car dealership in Westwood, say prosecutors. Prosecutors say the transfer was intended, in whole or in part, to conceal the source, ownership, or control of property derived from criminal activity, and he is expected to face additional charges in Norfolk County for that action.

Palladino was represented by attorney Philip Tracy. He is expected to return to West Roxbury court on Oct. 7 and Suffolk Superior Court on Sept. 30.


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