All language subtitles for American Greed s10e13 The Bad Neighbors.eng

In this episode of American Greed,
Steven Palladino runs a family ice cream

and is trusted by his tight -knit Boston
neighbors.

They loved him. He was the pillar of the
community.

He even lets his close friends in on a
great money -making idea.

He ran a multi -million dollar financial
business out of a small office over an

ice cream store.

But Palladino is hiding a dark secret.

I want to talk to you about Viking
Financial.

Investors in Viking now wonder if this
is a mini Madoff situation.

He needs to answer where our money is.

There's so much greed in this case. So
much money.

$55 ,000 spent at the Hard Rock Hotel
and Casino.

$25 ,000 on a Bahamas vacation.

And even when he's under investigation.

Palladino proves to have no shame in
gutting his own community.

Your investors are out millions of
dollars. What happened?

As I said, I left the closet behind.

Where's the money?

It's a different kind of criminal. He's
not out shooting people.

He gets in your good graces and takes
everything you got.

Boston, Massachusetts.

In the southwest corner of the city, the
neighborhood of West Roxbury has a

small town feel.

Nice houses, hard -working people, a lot
of cops live there, firemen.

It's a tight -knit, upper -middle -class
community, and everyone knows everyone

in West Roxbury. Yes, it's in Boston,
but it's a neighborhood.

And everyone in West Roxbury knows
Stephen Palladino.

The 59 -year -old father of three was
born and raised here in an unassuming

house on a middle -class street.

Palladino lived with his aunt and uncle
Conchetta and Pasquale Falange.

They raised Stephen. Stephen was from a
broken family, so they took him in and

raised him.

Palladino attends the local Catholic
Boys High School and goes on to a career

finance.

becoming a registered Boston stockbroker
in the early 1990s.

The story around town is that Palladino
is a local boy made good, one who never

forgets his roots.

In 2008, Palladino opens the Ice Cream
Works ice cream shop on West

Roxbury's main commercial drag.

Palladino's wife Lori does the books,
and his sons, including 31 -year -old

Gregory, helped to man the store.

First I recall hearing about Steve
Palladino when he opened his ice cream

on Fenner Street right in the major
business district.

Boston District Attorney Dan Conley also
lives in West Roxbury.

It was an easy walk from my house, and I
took my kids down there a couple of

times for ice cream. But, you know, his
reputation around town was hail fellow,

well met.

He was thought to be a good, honest
businessman.

If there was a fundraising event going
on, you'd pretty much rest assured Steve

Palladino would make a contribution.

And it was probably a bigger check than
the average contributor might make. So

he was highly thought of by a number of
folks, opinion shapers in our community.

From a small office above the store,
Palladino runs a company called Viking

Financial Group.

where he's moved from stocks into bridge
loans and begins taking on investors.

It was a pretty simple idea that he
would make loans to businesses primarily

a rate that was higher than they would
pay if they went to, say, a banking

institution of some sort. He would
charge the person getting a loan from

relatively high rate and then pay his
investors something less than that. They

would get a nice profit, as would he.

His partners are his wife, Lori, son,
Gregory, and a local businessman named

Ernest Buzzy Nasev.

Well, Buzzy is someone that also had a
pretty good reputation around town.

It appears that Palladino convinced him
to the business plan that he had, and

Buzzy must have felt that this was an
opportunity for him to earn a pretty

return and a safe product.

He was successful.

Now, since he then was successful, he
was able to pitch the program to members

of his own family and members to his
extended family and even some good and

close friends.

Dr. Ron Nassif, a retired orthopedic
surgeon, is Buzzy Nassif's younger

I trusted my brother like a child trusts
their parent.

My brother was in business and
administration. He knew the flow of

the numbers. I was in the health care
field. I knew nothing about it.

The large extended Nassif family has
been a fixture in the West Roxbury

neighborhood for decades.

My family and I have lived here since
the 1960s. And as we grew up, the

and would start our own families, we
bought homes locally. One brother across

the street, another brother around the
corner, my uncle and aunt and cousins

here. I myself just live a few streets
away.

So when Buzzy Nassif presents the
investment opportunity to his siblings,

and uncles, many of them get on board.

including the doctor.

I was being told that people were paying
18 to 20 percent, and his favorite

quote was, people are banging down our
doors to borrow money.

Trusting that his brother wouldn't sell
him on anything less than a secure

opportunity, Dr. Nasef decides to go in
big.

I was recently divorced, my business was
slowing down, so talking to my brother,

who I trusted as much as any man could
trust another, I started liquidating

bank accounts and closing out some
retirement funds, well into six figures,

my first investment.

Dr. Nasef does question why he is told
to make out his initial investment check

for $600 ,000 directly to Stephen
Palladino.

My brother explained by making out the
checks to Palladino, it was easier for

him to roll it over into a mortgage for
an upcoming borrower.

Whatever reservations he may have had
are quickly calmed when the first series

of loans come due, and Dr. Nasef sees a
12 % return on his money.

Over the next three years, he puts in
more than $1 million.

I was getting my interest every month,
and often I was rolling it over,

up the investment. And I always had my
brother reassuring me that their

was growing. Every month, we're up to $7
million. We're up to $7 .5 million. It

was very convincing.

And all my fellow family members were in
it. Steve Palladino was in all our

homes. He wouldn't be defrauding us at
this point. It wasn't something we even

contemplated.

When American Greed returns, Palladino's
business plan seems a win -win for

everyone. But is any of it real?

He was buddies with these guys. He dines
with these people. They were at his

house for a Christmas party.

They just took their money.

The house is being transferred to Steven
Palladino for $100.

And the house was worth well over $50
,000.

8 a .m. in Boston.

The city gets itself up and working, and
Stephen Palladino heads to his weekday

meeting spot, the morning hub of the
West Roxbury neighborhood.

Well, we're here in the center of West
Roxbury, and it was at this Dunkin'

Donuts that Stephen Palladino would
basically hold court every morning. Dr.

Nassif has invested more than a million
dollars in Palladino's Viking Financial

Group and likes to check on his
investment.

He'd be joined by one or both sons,
pretty much an all -male environment.

A number of us investors, my brother
Buzz often joined us. Other friends or

investors would stop by.

He knew everybody.

He would often speak about a loan he was
going to do that day or about some

upcoming gala event that he was
sponsoring.

There was always a way for him to make
his contacts.

Dr. Nasef is so happy with his
investment and confident in its

tells several friends about the plan,
including Tom Dowling.

Tom, I hope you know that when I told
you about this plan, I was convinced

it was a solid investment.

They made a good presentation, the two
of them. Yeah.

Darling is a Vietnam War veteran who
worked as a computer programmer for 30

years, saving little by little with his
wife for their retirement.

We just saved and saved. Both of my
parents endured the depression, as did

And in my case, my father worked three
jobs so that we could live in this

neighborhood. Darling has always played
it safe with his finances.

So he's especially interested when
Palladino guarantees that the program is

practically risk -free.

When I listened to his pitch, it sounded
sound to me. It had a solid ring to it.

The money was being loaned to
contractors, mostly, who needed the

finish their projects. This was money
that was invested in the area, in

tangible properties. So it was not going
to disappear.

Dowling starts with an investment of $10
,000.

Within two years, he's in for $100 ,000,
his entire nest egg.

The specified interest showed up every
month.

It just clicked along like a clock.

Tick -tock, tick -tock, here comes
money.

Tom Dowling and Dr. Nasev aren't the
only ones who think they've got a good

going.

By 2012, the West Roxbury community is
buzzing with positive reviews about

Viking Financial and its ability to pay
out significant interest with little

risk.

What they don't know is that precious
little of their money is being loaned

at all.

And the vast majority of it is going
straight into Stephen Palladino's

bank account.

Sergeant Detective Tommy Dentremont has
been a Boston police officer for 27

years.

He works out of the BRIC, or Boston
Regional Intelligence Center, downtown.

In 2010...

he catches a tip from an informant about
a shark on the loose in West Roxbury.

We received some information that this
guy, Steve Palladino, was throwing a lot

of money around and was ripping people
off.

And as a result, we began an
investigation.

From the outside, Stephen Palladino
seems like a successful entrepreneur,

right by his investors.

Steve Palladino convinced some of these
people whose homes were paid for.

To remortgage, take the equity out, and
then invest in Viking Financial.

The idea being they could borrow the
money, probably 4 or 5 percent, and

paying them 10.

If it's legit, it's good business.

But it wasn't.

The detective and his team learns that
although Viking is a registered company,

Stephen Palladino is not listed as an
officer.

Only his wife Lori and son Gregory are.

That's because legally, he can't be in
charge.

Paradino is hiding a 20 -year rap sheet
thick with theft and larceny charges.

In 1994, while working as a stockbroker,
he was censured and fined $50 ,000 by

financial industry regulators on charges
of misappropriating client funds for

his own use.

He was also hit with a felony conviction
which bars him from owning a financial

business like Viking.

The most shocking find is that he is
currently on probation for a felony

conviction.

This time for ripping off the woman he
lived with as a child and who raised him

like a son, his aunt Conchetta.

Dentramon contacts the Boston PD case
detective Mike Harper, who works out of

West Roxbury.

In 2005, Harper opens an investigation
for 92 -year -old Conchetta.

She had concerns about her nephew,
Stephen. He had presented her several

earlier an application, supposedly, for
a local Catholic high school.

And that was for financing his son to go
to that school.

He asked her if she could sign it.

And she asked him for her eyeglasses.

And he said, no, auntie, you don't need
your glasses. Just sign next to my

finger. And she did. And what she in
turn was signing was the quitclaim deed

the property.

And that deed said that the house was
being transferred to Stephen Palladino

$100. And the house was worth well over
$350 ,000.

Once in his name, Stephen Palladino
proceeded to take more than $450 ,000 in

equity. out of the house.

Mrs. Falange doesn't realize what has
happened until she receives a notice

her homeowner's insurance has been
canceled.

It lists Stephen Palladino as the owner
of the property.

She was angry about Stephen. Her and her
husband, Pasquale, raised him, and she

couldn't figure out why he would have
ever done anything like this to her.

From what she had told us, this was a
house that was going to be willed to

Stephen Palladino's three children.

It appears Stephen Palladino wanted the
house all for himself, stealing it not

only from his aunt, but from his own
children.

Palladino pleads guilty in the case,
receives a two -year suspended sentence,

and is ordered to pay restitution while
on probation until the house is legally

backed in Mrs.

Phalange's name.

It was looked at at the time that if he
was incarcerated, how would he be able

to get the monies.

put the house back in Connie's name. And
by 2007, the house was back in her

name. Now the detectives investigating
Palladino's Viking Financial Group are

starting to get a good idea about where
Palladino came up with the hundreds of

thousands of dollars he needed to pay
the court.

He stole from the aunt because he likes
to steal, and then he stole from

investors to pay back probation because
he got caught.

Next, the cops may have revealed
Palladino was a crooked thief, but most

victims refused to believe it.

There was no cooperation.

They loved him. And that was frustrating
because no victim, no crime.

In the winter of 2011, Boston PD
Sergeant Detective Tom Dentremont and

of detectives are working a case on
Stephen Palladino, who's taking in

of dollars from investors for his Viking
financial loan company and spending

millions of dollars on himself.

He threw a ton of money around. He drove
a Mercedes.

His wife had a Range Rover.

They had an Audi also. They lived in a
nice house.

palatial palace. Everybody thought he's
making it. His investors, like Dr. Ron

Nassif, believe their money is safe with
Paradino.

I thought he was promoting his company
seeking investors.

He was always looking for the next
opportunity.

He even went into the Patriots, and his
target was to get into the locker room

and get them to invest.

Doing things like that, and you've got
your son on one side and your wife on

other, how could we not believe he was
telling us the truth?

But the Boston cops are coming up with a
much different picture of Palladino.

Not only does he have a long criminal
history of theft and larceny, he's got a

massive gambling habit to boot.

His bank records showed close to a
million dollars in mocks going to

casinos. If he's his pal, they have a
jet.

If you spend a ton of money, they'll
send their jet to come get you.

The team decides to put Palladino under
surveillance.

to see what else he may be up to.

We were still trying to figure out who
was involved, what actually were they

doing, and who were they doing it with.
We actually followed him numerous times

without his knowledge, and we started to
develop leads.

They follow him to his favorite
restaurant, a high -end see -and -be

where the 59 -year -old Palladino holds
court, spending thousands of dollars a

night, all in the company of his 20
-year -old mistress.

a former waitress there.

Took her on trips, and used to shop at a
place, Hermaine.

I've never been there, but I think it's
an expensive place.

We went and talked to them there, and
they knew him, and he was a big tipper.

Cops trailed the couple as they drive to
a waterfront condo building, where

Palladino has been paying for a luxury
apartment for the mistress and

her bling and bag habits.

It was obvious that he was spending the
money on himself and his lavish

lifestyle and his gambling and his
girlfriend, buying cars and buying

and going to all these high -end things.
And that's what he was doing, but it

was with other people's money.

Palladino also has seasoned Celtic seats
and is in the process of building a

massive new home on the most expensive
street in his neighborhood.

That's the house that was on the lot,
right? The empty lot.

He had big dreams. Look at that.

It's got to be well over a million.

That's quite the house.

Amazing. Look at the front entrance.

Someone else was paying for it.

What could have been?

The gall, though. He's building it right
in the same neighborhood as all his

victims.

With a white -collar case this big,
these Boston detectives used to working

violent crime need help following the
money.

They turn to the Suffolk County DA's
office and lead prosecutor.

Ben Goldberger.

Based on the intelligence that they had
gathered and Stephen Palladino's

criminal history, it seemed like this
was something that was ripe for

investigation. It didn't add up. You
didn't have enough money coming in on a

month -to -month basis to cover this
business's expenses.

So we know he was buying all kinds of
sports tickets, front row.

Goldberger puts together a team.

including financial analyst Ellen
Kearns, who takes a hard look at

finances.

If you report yourself as an investment
company, there should be something

you've invested in. Just taking a look
at the flow of the money, I didn't see

any product.

What I did see was money flowing from
one account to another and into casinos

and into personal type business.

Given Mr.

Palladino's history and given some of
the other oddities that the financial

analyst noticed, we really began to
think that this is either a money

scheme or a Ponzi scheme.

And we didn't know which.

The team sifted through Palladino's bank
records until they discovered a smoking

gun.

In this case, checks forged by Palladino
with investors' names and signatures on

them.

There were checks written from Viking
Financial to an investor.

The back is forged, endorsed, and then
Steve signs it and they put it into the

personal account. So basically they're
moving the money from the business to

personal account with forged checks.

And this was the disguised money that
was being moved out of the corporation.

into the personal accounts in order to
make it look as if it was a return of

principle to investors, when in fact it
was just a transfer of money from the

company to Stephen Palladino.

The team is now sure that Stephen
Palladino is operating a scam.

In December 2012, the Boston PD seizes
Palladino's bank account with more than

$600 ,000 in it.

The cops think this will put a stop to
the suspected con man.

But they couldn't be more wrong.

Even after they freeze his bank account
and search his office, Palladino is able

to convince an elderly couple to
liquidate their retirement savings and

him with it.

He kept taking money. I mean, he knows
we're out. And then a week or two later,

he went and took half a million dollars
from a couple.

Paladino and his partner, Ernest Buzzy
Nassif, are also making the rounds,

assuring investors that all is well.

All of them were telling us he hasn't
stolen anything, the money's there, so

couldn't let go of our belief that our
money was protected.

Dr. Ron Nassif, who has invested more
than $1 million and whose close family

members and friends make up the majority
of Paladino's investors, holds on to

hope that Paladino...

can be trusted.

Palladino went from house to house, met
with every investor personally.

He came to the home of my uncle and
aunt, and I was in attendance.

And he reassured us, your investments
are protected.

We believed it because we wanted to
believe it. Many of us had our life

with him.

Next, what's it going to take to stop a
thief?

Keep spending money like it didn't
happen.

You live in the high life.

Now the investment is called.

If you do something, you spend the rest
of our money.

In 2012, Stephen Palladino stands
accused of orchestrating the biggest

-collar fraud in Boston in 100 years.

It's but the latest crime in Palladino's
long career of theft and larceny, and

Suffolk County District Attorney Dan
Conley has had enough.

He dusts off an old New England statute
dating back to 1804 and charges

Palladino with being a common and
notorious thief, a charge that could

Palladino's sentence up to 20 years.

I'd like to give a tip of the cap to the
members of the Massachusetts

legislature.

in the early 19th century when they
enacted the statute of common and

thief back in 1804.

If there ever was a person who can be
best described as a common and notorious

thief, it's Stephen Palladino.

Palladino and his wife Lori are also
indicted on charges of larceny,

corporate books, and loan sharking.

And Palladino's son Gregory is
subsequently charged with three counts

After turning himself in, Palladino
makes $250 ,000 bail and

is free awaiting trial.

But instead of lying low, he decides to
strike back at law enforcement by suing

them.

It is an exceptionally rare thing for a
defendant to file a lawsuit against a

prosecutor or against the police
department.

That was certainly my first experience
with it. His lawyer, Walter Prince, also

tries to reassure Viking investors that
there is nothing to worry about.

Every investor, according to my
knowledge, has been paid to date. No one

lost a dime.

It was very hard for victims to accept
that this investment, For some of them,

with a significant portion or all of
their retirement savings, that this

investment was a fraud.

One victim spent more than 30 years
working in the highest levels of law

enforcement.

He's so embarrassed he fell for
Paladino's scheme, he asked us not to

identity. We were still getting paid our
interest.

We were still being told, this is
nothing, it'll go away.

It's just an investigation on income tax
issues.

But when he was arrested and charges
were made public, and then the questions

started flying, then we realized we were
probably in trouble.

Meanwhile, Palladino makes no effort to
change his behavior.

He's out and about flaunting his
extravagant lifestyle.

But once he stops making interest
payments to investors like Dr. Ron

They finally understand Palladino's true
nature.

He spent our money, and that was the
most frustrating part.

For us to suddenly lose our interest,
for me it was my only income at the

and to see him driving around in his
Mercedes with his girlfriend, going to

jewelry stores and things, it was
outrageous.

This indeed truly was a Ponzi scheme.

Our money was stolen and taken from us
and used for personal reasons by Mr.

Palladino and others.

Prior to a conviction, there's a limit
to what the DA's office can do to stop

Palladino's spending spree.

So they bring their case to SEC attorney
Dina Bernstein, who files a civil case.

So we sued Mr.

Palladino and Vikings, the company that
he sort of ran, so that investors can

try to get at least some of the money
back that has been taken from the fraud.

In short order, the SEC gets a federal
judge to freeze all of Palladino's

and orders him to turn over all ill
-gotten gains.

Problem is, once again, Palladino thumbs
his nose at the system and completely

ignores the judge's orders.

Even though these assets were supposed
to be frozen, he kept on spending money,

opening credit cards to use at high -end
restaurants.

He took cars that were in his name, put
them in his wife's name, and then got

large loans that they used to fund their
lifestyle.

Viking victims are forced to stand by
and watch as Stephen Palladino not only

steals their hard -earned money, but
spends it in front of them.

They turned to local investigative
reporter Mike Bodette, who is

intrigued by the story.

We got a call from one of the victims
who said, you've got to check this guy

because he's charged with a crime, yet
he's going around Boston and basically

acting like nothing's wrong.

And so we said, all right, we're going
to look at this.

They ended up following him around and
saw him driving in the luxury vehicles.

Here he is toweling off his Mercedes.

But that's not his only luxury car.

This is him gassing up his Audi. Going
around to fancy restaurants, acting like

nothing was wrong. And that was the fear
the victims had, that he was out there

spending their money.

Palladino is being monitored by a court
-required ankle bracelet when Beaudet

decides to confront him.

Hi, Mr. Palladino. Mike Beaudet with Fox
25.

How are you? Good. How are you doing? We
want to talk to you about Viking

Financial. I would love to talk to you,
but unfortunately I can't make any

comments. Your investors are out
millions of dollars. What happened?

As I said, I'd love to talk to you, but
I can't. Where's the money?

You seem to be living a pretty lavish
lifestyle.

There's so much greed in this case and
so much money.

You have the upper middle class
neighborhood in Boston where this guy is

And all these people are giving him
their money.

And then to see it all disappear, it
just had all the ingredients of classic

American greed.

$55 ,000 spent at the Hard Rock Hotel
and Casino.

$25 ,000 on a Bahamas vacation.

A $220 ,000 wire transfer to Caesars.

Palladino may be free to go.

But what he doesn't realize is that the
Boston PD has him under surveillance,

watching, waiting, concerned that
Palladino may try to take the money and

I thought he was going to try to take
off eventually.

He just was spending money. He was
unflappable.

Next.

The suspect slips up and detectives
pounce.

We pulled him out and searched him and
he had $4 ,400 cash and he was on his

in town to have a night out with his
girlfriend with the investment money.

Here Palladino caught on tape loan
sharking at CNBCprime .com slash

Greed.

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We'll be right back.

In September 2013,

Boston detectives are keeping a close
eye on Stephen Paradino.

While the career thief has been charged
with defrauding his own friends and

neighbors, he's out on bail.

and still hiding assets and spending
lavishly.

Thinking he doesn't care.

He's on the bracelet. He's holding a
$250 ,000 bail.

He's driving around like he won the
lottery.

The cops bide their time until an
increasingly desperate Paladino makes a

mistake.

He tries to collect on one of the few
loans he's made, charging more than 40 %

interest.

Your note was due on August 1st. So it
is past the grace period.

We'll need to speak to you to find out
when I can expect a check.

Palladino gets hit with a criminal
charge of usury, also known as loan

He charged a very excessive rate of
interest. Under mass law, the most you

charge is a 20 % rate of interest.

Other than that, you're breaking the
law.

And detectives move in, hoping to
finally get the financial predator off

streets. On the afternoon of September
3, 2013,

Sergeant Detective Tom Dentremont and
Detective Dave Yee stake out Palladino's

house.

An hour later...

Palladino pulls away in his Mercedes S
-Class and heads toward downtown Boston.

Detective Yee and I followed him from
his house on Lyle Street, and we

him out the VFW Parkway, and he pulled
in here.

At the gas station, the detectives
approach a surprised Palladino and tell

he's under arrest.

We pulled him out and searched him, and
he had $4 ,400 cash in his purse.

And he had a check in his wallet for $3
,400, and he was on his way in town to

have a night out with his girlfriend
with the investor's money.

The man, with no shame, begs the police
to let him go.

He wanted out. He said he'd talk to us
if we got him out that night. And we

him, you're not going to get out
tonight.

I said, why?

Why did you do this?

He said, well, you know, I was making so
much money, and it got out of control.

He said it was just greed.

Until yesterday, Palladino had been a
free man for months while he waits to go

on trial.

The next morning, Palladino faces
arraignment on the new charges.

Reporter Mike Bodette is in the
courtroom.

Steven Palladino in West Roxbury
District Court, asking his family if

the $25 ,000 to bail him out. Watch
again and we'll help you with the lip

reading. 25, he says, do we have it?

Also in the courtroom that day, Dr.

Ron Nason, who has become the default
victim's spokesperson and who wants to

know where his million -dollar
investment went.

Inevitably, he needs to answer where our
money is. Where are these millions and

millions of dollars of investors' money?

While Palladino, his wife and son, all
await trial, the Palladinos have filed

for bankruptcy.

And it's up to trustee Mark DiGiacomo to
recover any assets they may have.

Well, there are all sorts of different
kinds of assets.

There was cash that had been recovered.

There were high -end vehicles.

There's real estate.

There is also nearly $100 ,000 in gifts
Palladino bought for his mistress, the

20 -year -old woman he met at his
favorite high -end restaurant, including

diamond jewelry.

designer clothing, Manolo Blahnik shoes,
Louis Vuitton luggage, and

an Hermes Birkin bag worth up to $15
,000 retail.

DiGiacomo wants it all back.

We contacted her. She got her attorney
involved. And we had a frank discussion

that these were items that needed to be
recovered.

And basically we said we can do this the
easy way or the hard way. And she opted

for the easy way and put them in some
boxes and shipped them over to us.

DiGiacomo is able to recover almost $1
.3 million.

But once it's all divided up, each
victim will see pennies on the dollar.

Next.

Paladino's investors may not get their
money back, but will they get justice?

We saw the Mercedes and the BMWs in your
families.

We saw your extramarital escapades that
we fellows kept quiet, of course.

Is there more money out there?

Are you hiding any money, Mr. Paladino?
No, for the moment.

Downtown Boston, January 2014.

In Suffolk County District Court, with
many of their victims in the courtroom,

Stephen, Lori, and Gregory Palladino all
plead guilty to multiple counts of

fraud.

Stephen Palladino, with the most
charges, faces up to 20 years in prison.

Waiting outside as the Palladinos leave
the courtroom,

Boston investigative reporter Mike
Beaudet tries to get them to talk.

Why are you willing to admit you ripped
people out?

I thought it was a very fair process,
and as I said from the beginning, my

focus is restitution. That's all I have
to say. Is there more money out there?

Are you hiding any money, Mr. Paladino?
No further comment, Mr. Barton.

Criminals!

At the sentencing hearing, the
Palladino's victims have a chance to say

peace to the man and his accomplices who
stole their futures.

We saw the Mercedes and the BMWs and
your families. We saw your extramarital

escapades that we fellows kept quiet, of
course.

Celtic tickets courtside.

Always flying first class.

Remember the Super Bowl? I took my son.
Coach, you took yours first class.

And I paid for it.

The victims in this case weren't
necessarily millionaires. They were hard

-working people.

Some of them had substantial sums of
money, but Steve Palladino and Viking

Financial, they took almost everything.

And some of these folks are a little
older and not enough time to recover,

it's a tragedy what happened.

The judge sentences Stephen Palladino to
a 10 -year sentence. His wife Lori gets

two years supervised release.

And his son Gregory receives a two -year
sentence.

It was a moment the victims of the
Palladino family of West Roxbury have

waiting for. The sentencing of Stephen
Palladino, his wife Lori, and son Greg

Suffolk Superior Court.

As Stephen and Greg were led away in
handcuffs, some of the people who lost

their life savings could not hold back
their anger.

Tell them what his money is. 2024.

You're someone's boyfriend.

Save yourself.

The U .S. Attorney's Office also steps
in and charges Palladino with 25 counts

of federal criminal contempt.

It has recently resulted in him serving
an additional two years of time. So

after he does 10 to 12 years for the
fraud in state prison, he will go to

federal prison for an additional two
years for all that activity he was doing

once we had the freeze, once we had...

and said, don't spend any more money.

For the victims, the sentences provide
some justice, but little in the way of

payback.

Dr. Ron Nasef, who built an orthopedic
surgery practice, raised his children,

and retired, has lost nearly everything.

I've lost a good deal of my retirement.
I'm basically living on Social Security

now. Withdrawing my retirement, paying
taxes on the early withdrawal, and then

losing it all has been devastating.

Worked 30 years of hard work.

I lost well over seven figures, as did
the people who were closest to me, who

invested with me.

People like Dr. Nasef's friend Tom
Dowling, who also has to come to terms

the fact that his life savings has
vanished.

It was a painful experience to face that
cold reality that...

My money is gone.

The money that we had saved by living
modestly, and the money that the highest

goal for was to be able to pass it on to
my son, that wasn't there.

That hurts.

Worse than losing the money, this case
has torn the once -close -native family

apart.

Dr. Nassif blames his older brother,
Ernest Buzzy Nassif, for partnering with

Paladino and then convincing many Nassif
family members to invest.

I'm disappointed that all he did was
take the fifth when he saw his brother,

sister, and other brother, cousin,
uncle, and aunt collectively out $6

that we had invested and trusted him.

destroyed our family relationship in
many respects forever.

I mean, we're all on opposite sides of
civil suits now, and we're not talking,

and his daughters were like my own at
one time. I have no communication with

them now.

Despite the fact that Ernest Nassif
collected an estimated $2 million over

course of the fraud, he is not charged
criminally. Ernest Nassif maintains that

Palladino lied to him also.

providing lists of fake loans that
Palladino claimed to have made.

I think he was probably duped too.

Why would Steve give him the fake loans
if he was in on all of it?

We only charge what we can prove.

Sometimes it's very difficult when
you're trying to unwrap a Ponzi scheme

have an individual who is closer to the
center.

It's often tough to look inside people's
minds. You can only look at the

circumstantial evidence of what was
their knowledge, what was their intent.

Can I prove this beyond a reasonable
doubt to a moral certainty at trial that

this person is not a victim, that this
person is a criminal?

And that's a tough burden to meet.

But in February 2016 in civil court...

With the burden of proof as less, a
judge sides with the family members

Ernest Nassif and issues a summary
judgment finding Nassif liable for his

family's losses.

And still, the Nassif family and dozens
of others are left shattered by the

flagrant greed of their own friend and
neighbor who set the scheme in motion.

It seems everyone involved in the case
agrees on one thing.

And Steven Palladino is right where he
belongs, no longer able to victimize the

innocent.

You know, it's very disappointing when
you see a guy like Steve Palladino who

has an ability to be a contributing
member of a community.

Instead, greed gets the better of him.
He can't be satisfied with his station

life. He wants more and more and more.

Almost feels like he's entitled to it.
He was spending other people's money to

live this lavish lifestyle, but bottom
line, he's a guy who couldn't make it on

his own. I don't think anyone's feeling
one...

bit of sympathy for Steven Paladino. He
got exactly what he deserved.

It's a long sentence. He should be
serving a long sentence.

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