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Saturday, July 26, 2008

Louie DiFonzo and his Schemes







This part of the story is about Luigi Miguel Difonzo. I write this now because of the information and stories provided by certain individuals who knew Louie and his con's.



Early on Louie looked for small time scams and street hustles refining himself by washing drug dealers money when he was young. Even then his cons were raking in money by promising returns on their drug money, how does that happen and how does that work!. Louie was into boxing and he was a accomplished fencer and body builder he even taught a screen writing course at Harvard. He was a jack of all scams.





Ok here we go. While Louie was here in the 60's he worked at Beneficial Finance Company on Pleasant street, Fall River. Louie went to Bryant College, Smithfield R.I. with William Jr It was this place that Louie refined his skills in accounting and threw college he took a SEC course. While at Beneficial, Louie began to steal money in his first Ponzi sceme. Basically if you made money he would sign off on the return investment, if you lost he wouldn't sign it.





The reality of the scheme is that the "return" to the initial investors is
being paid out of the new, incoming investment money, not out of profits. No
"global currency arbitrage", "hedge futures trading" or "high yield investment
program" is actually taking place. Instead, when investor D puts in money, that
money becomes available to pay out "profits" to investors A, B, and C. When
investors X, Y, and Z put in money, that money is available to pay "profits" to
investors A through W. The reality of the scheme is that the "return" to the
initial investors is being paid out of the new, incoming investment money, not
out of profits. No "global currency arbitrage", "hedge futures trading" or "high
yield investment program" is actually taking place. Instead, when investor D
puts in money, that money becomes available to pay out "profits" to investors A,
B, and C. When investors X, Y, and Z put in money, that money is available to
pay "profits" to investors A through W.




One reason that the scheme initially works so well is that early
investors – those who actually got paid the large returns – quite commonly
reinvest (keep) their money in the scheme (it does, after all, pay out much
better than any alternative investment). Thus those running the scheme do not
actually have to pay out very much (net) – they simply have to send statements
to investors that show how much the investors have earned by keeping the money
in what looks like a great place to get a high return. They also try to minimize
withdrawals by offering new plans to investors, often where money is frozen for
a longer period of time, for example 50% return per month for one year. They
then get new cash flows as investors are told they could not transfer money from
the first plan to the second.




The catch is that at some point one of three things will happen:
the
promoters will vanish, taking all the investment money (less payouts) with them;
the scheme will collapse of its own weight, as investment slows and the
promoters start having problems paying out the promised returns (and when they
start having problems, the word spreads and more people start asking for their
money,
the scheme is exposed, because when legal authorities begin examining
accounting records of the so-called enterprise they find that many of the
"assets" that should exist do not.



I hope I explained it the right way. DiFonzo ran this scam 4 times and I'll explain them and his alias.



Beneficial Finance was the first scheme in Fall River he stole a mere 1,256,673 dollars in the first scheme. Nobody reported him and then he just moved on. A good friend and a mobster and bookmaker from Providence Anthony St Laurent { made famous for being put in the Black Book in Las Vegas for gambling } got him a job in Chicago were his second Ponzi scheme started in Chicago he would steal an estimated 26.4 million dollars were the Securities and Exchange commission would shut him down and arrest him. And they did arrest him and they eventually dropped the charges because. His lawyer wanted the IRS to release his tax returns to be amended and the government wouldn't do it, so they dropped the charges because the didn't want to release his records to him to be amended. So the case was dismissed for lack of prosecution.


So Louie came back to Fall River and go a job in Boston under the alias "Keith Anderson" and starts another Ponzi scheme and at that time he starts a screen writers course in Harvard. So this is way before the Puralator. Louie, John Keehan and my father need money and they need it fast. So they hired a girl to rent an expensive apartment on Beacon Hill in Boston. Then they hired 5 actresses and 5 actors to play couples to rent out the apartment to rich Harvard students. And they rented it out to 90 different people, using the actors and to mix and match them up. So when the cops come they can not give a positive identification of who rented the apartment. It was always someone different. They netted 150,000 dollars from all those who rented the apartment. And after they paid the actors a grand a piece. They walked away and ran another scam.


So DiFonzo's alias "Keith Anderson" was eventually shut down, not before he took another investment company for 2.9 million. And then went back to Chicago after serving time 8 months for securities fraud.


So Louie has no money when he gets out of Danbury Conn Federal Prison so he wants William Jr and John Creeden Jr to kidnap two people who owe DiFonzo 90,000 grand. People he knew in Chicago and they are now in Las Vegas. John Creeden Jr knows something is wrong so he calls John Keehan and ask him about this situation and about the people, John Keehan said he would call him back and ten minutes later he does and tells them that they are made men. And one is an under boss of Anthony Accardo, so hands off. William Aguiar Jr is pissed and when DiFonzo walks into the school William Jr knocks Louie DiFonzo out and proceeds to flip out on DiFonzo. He sticks a gun in DiFonzo's mouth and tells him. You stupid mother fucker your gonna get us all whacked with your stupid shit. John Keehan went to Fall River to calm everything down. And tells Aguiar that their a big robbery coming up and they'll need a person who knows banking out of Chicago to wash the money threw off shore account's.

I won't really comment on the Puralator and how it happened, but after the robbery and everything went wrong. Louie DiFonzo called the karate school and asked for a meeting with William and my father. Not trusting anyone they called the F.B.I. office out of Providence R.I and John Keehan who flew out of Chicago that day. And they asked if they were interested, the F.B.I in this robbery, they said they weren't interested. My father hung up the phone and in five minutes they called him back and they stated that they called the Chicago office to check out their story. And they wanted their cooperation about this robbery. So the next day the F.B.I. were in the Durfee street school. they wired up Billy jr and they put the transmitter on my father.

What happened next was a shocker. DiFonzo showed up with his attorney Oteri. Why would he do that, bring his attorney to a meeting about the Purolator. William jr started to panic with the wire on, so he took it off and put it under a phone book next to were DiFonzo was sitting. DiFonzo came in with Oteri and gave William Jr a big hug and kinda searched him. He went over to my father to hug him and he stuck a 45 caliber pistol in DiFonzo's face and told him to sit down.

Now William Jr and My father were pissed a week prior DiFonzo deposited a little over 490,000 dollars in Genghis Khan limited. Which was an account that was in my fathers name in the Caymans. So they wanted the money out. What DiFonzo didn't know was John Keehan was standing in the closet listening to the whole conversation. Oteri tried to interject but was told to shut up or they will make him shut up.

Its just funny that the informants names were sealed for life, and some of the money was recovered in someones mothers basement. And then DiFonzo ratted everyone out and his reward money was bigger than the cut that he would get from the robbery itself.

Also their were 5 people here who were involved in the Purolator Robbery. My father know is the only one alive.

After the Purolator in 1974 DiFonzo stood in Chicago for some years later, and then moved out to Souther California and started another Ponzi scheme and business called DJF ITALIA. And he even called himself Count Luigi Miguel DiFonzo. He stole an estimated 400 million dollars from NFL players and some porno people out their. Before he was convicted he committed suicide in 2000. An overdose on drugs.


5 comments:

  1. This is all bullshit. I am in Chicago, we know all the players. These guys netted nothing from the purolator heist. What a bunch of buffons.

    ReplyDelete
  2. You know nothing thats why your from Chicago, Difonzo took your money and know your crying about it.

    ReplyDelete
  3. fuggin Difonzo paid in the end, didn't he>?

    ReplyDelete
  4. johngwindham@aol.comDecember 9, 2014 at 3:14 PM

    Are you still active in this case, I have info that might help you.

    ReplyDelete