Man allegely bilks friends out of $20M

BOSTON, May 14 (UPI) -- U.S. prosecutors have indicted a Harvard-educated man for allegedly bilking 250 friends out of $20 million they invested with him.

Frank Russo, 51, of Wakefield, Mass., lived a lavish lifestyle while running a pyramid scheme that thrived for as long as 25 years, prosecutors charged in the indictment.

He repeatedly assured his clients -- including relatives, neighbors, teenagers and the elderly -- their assets were safely invested. Monthly statements he sent them showed steady gains, The Boston Globe reported.

But the profits were fiction, prosecutors said in U.S. District Court in Boston.

Some former clients have been forced to sell their homes. Others have fallen behind on mortgage and car payments. College and retirement accounts are gone and profits from family businesses have disappeared.

The former high school football player, who is married with three children, is confined to his home under electronic monitoring while his case works its way through court.

His attorney Paul Kelly denied Russo ran a pyramid scheme as prosecutors allege.

Kelly said Russo was a well-meaning businessman who became a casualty of risky financial gambles gone sour.