BALTIMORE -- The state of Maryland has ordered convicted swindler Santo Rigatuso to set up a $2 million fund to pay back people who lost money through jewelry and credit-card schemes he masterminded, lawyers said Thursday.
Attorney General J. Joseph Curran Jr. said Rigatuso, of Crofton, must set up the revolving trust account to pay back people in Maryland and other states who fell prey to the multimillion-dollar schemes. A New Jersey federal judge ruled in a civil action Wednesday that Rigatuso and his wife, Donna, must reimburse thousands of consumers who paid fees to obtain major credit cards.
'I don't think $2 million will cover everybody that is out there,' said Roger Wolf, special assistant attorney general. But he added that he has no assurances that Rigatuso will produce the money to set up the fund.
'I suspect there's money there, but whether or not we'll get the money ... ,' said Wolf. If Rigatuso doesn't comply, he said, 'We would have to go into court to enforce the order.'
Federal authorities estimate Rigatuso bilked consumers nationwide of at least $5 million by offering to obtain credit cards from Visa, Mastercard and American Express for a fee. A federal judge in Baltimore sentenced Rigatuso Wednesday to 10 months in prison and ordered he pay $106,000 in restitution for mail fraud and tax evasion convictions in the credit-card scheme.
In the 'Santo Gold' jewelry scam, the attorney general's office said Rigatuso aired national advertisements for the gold items, claiming to dip them in acid to prove their value. But the jewelry was actually dipped in Alka Seltzer, officials said.
In a third scheme in Maryland, Rigatuso ran ads promoting a 'millionaire giveway,' saying that $7 million had been provided to Baltimore residents in $1,000 increments of merchandise. Consumers only had to pay shipping and handling for the goods, which they never received, the attorney general said.
Rigatuso has 30 days to come up with the money or appeal the Maryland order from the consumer protection division, Wolf said.
Under the state's order, signed Wednesday, Rigatuso must pay additional money to the state if the $2 million does not cover all of the claims filed against him. He also must pay the administrative costs for tracking down consumers who paid him for credit cards or the fake jewelry, officials said.
