A Long Island lawyer was charged in mid-March with stealing $4.6 million from family members as part of a broader Ponzi scheme.  Robert Cassandro, a partner at Abelow & Cassandro, pled not guilty in Manhattan State Supreme Court to first-degree grand larceny and first-degree scheme to defraud. Prosecutors' Findings and Allegations. According to prosecutors, Cassandro asked relatives, friends and other individuals to lend him money to build single-family homes on Long Island.  He then used the properties to secure additional private loans from other sources, collecting sums in excess of the money needed to fund the projects.  In one instance, Cassandro allegedly took more than $4.6 million from family members in Manhattan and used the money as a "slush fund" to pay for personal expenses, including his own mortgage. Lawyer Blames Bankruptcy. Lawyers for Cassandro said in an interview that the Manhattan DA's office had misconstrued a series of legitimate real estate deal gone bad.  According to Peter Tomao, who represents Cassandro, the homes on Long Island ran into financial problems in 2008 after the housing market collapsed, eventually forcing Cassandro into bankruptcy.  He added:

"From our point of view, there's no reason to pursue this as a criminal matter.  We don't believe the allegation is going to hold up in court."

Cassandro, 47, was released on $50,000 bail - posted by his father.  He's due back in court on 5/9/12. Cassandro Disciplined by SEC. In 2004, Cassandro agreed to pay a $25K civil penalty to the SEC to settle charges that he had helped a company, Spectrum Brands, hide its true ownership by drafting fraudulent securities documents.  Of course, Cassandro settled without admitting or denying the allegations in the settlement. Tamao, who represented him in that matter, said it was entirely unrelated to the current case. The case: People of New York v. Robert Cassandro, New York State Supreme Court, New York County, No. 1036/2012. For the prosecution: Assistant District Attorney Sarah Sacks. For Cassandro: Ed Mandery of Mandery & Mandery and Peter Tomao. Click for reference story:  [Reuters, 3/14/12].