Nevin Shapiro
   HOME

TheInfoList



OR:

Nevin Karey Shapiro (born April 13, 1969) is an American fraudster who received a 20-year prison sentence for orchestrating a $930 million
Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays Profit (accounting), profits to earlier investors with Funding, funds from more recent investors. Named after Italians, Italian confidence artist Charles Ponzi, this type of s ...
. The remainder of Shapiro’s sentence was commuted by President Biden in December, 2024. According to interviews, he allegedly engaged in rampant violations of
NCAA The National Collegiate Athletic Association (NCAA) is a nonprofit organization that regulates College athletics in the United States, student athletics among about 1,100 schools in the United States, and Simon Fraser University, 1 in Canada. ...
rules over eight years as a booster for
University of Miami The University of Miami (UM, UMiami, Miami, U of M, and The U) is a private university, private research university in Coral Gables, Florida, United States. , the university enrolled 19,852 students in two colleges and ten schools across over ...
athletes. Shapiro allegedly provided football players cash, goods, prostitutes, and assorted favors.


Early life and education

Shapiro was born in
Brooklyn Brooklyn is a Boroughs of New York City, borough of New York City located at the westernmost end of Long Island in the New York (state), State of New York. Formerly an independent city, the borough is coextensive with Kings County, one of twelv ...
on April 13, 1969, to a
Jewish Jews (, , ), or the Jewish people, are an ethnoreligious group and nation, originating from the Israelites of History of ancient Israel and Judah, ancient Israel and Judah. They also traditionally adhere to Judaism. Jewish ethnicity, rel ...
family and moved with his family to
Miami Beach, Florida Miami Beach is a coastal resort city in Miami-Dade County, Florida, United States. It is part of the Miami metropolitan area of South Florida. The municipality is located on natural and human-made barrier islands between the Atlantic Ocean ...
at an early age. He graduated in 1986 from Miami Beach Senior High School. Shapiro, who is 5 feet, 5 inches tall, was a member of the school's
basketball Basketball is a team sport in which two teams, most commonly of five players each, opposing one another on a rectangular Basketball court, court, compete with the primary objective of #Shooting, shooting a basketball (ball), basketball (appro ...
and
wrestling Wrestling is a martial art, combat sport, and form of entertainment that involves grappling with an opponent and striving to obtain a position of advantage through different throws or techniques, within a given ruleset. Wrestling involves di ...
teams.


Ponzi scheme


Federal criminal allegations

Shapiro started Capitol Investments USA, which he claimed bought wholesale groceries and shipped them to more expensive markets, although he said that he never actually sold the groceries. Shapiro's
Ponzi scheme A Ponzi scheme (, ) is a form of fraud that lures investors and pays Profit (accounting), profits to earlier investors with Funding, funds from more recent investors. Named after Italians, Italian confidence artist Charles Ponzi, this type of s ...
was based on attracting investors to Capitol Investments. He promised investors they would make 10 to 26 percent commissions every month. In 2003, his business grew quickly through connections with Sherwin Jarol in
Chicago Chicago is the List of municipalities in Illinois, most populous city in the U.S. state of Illinois and in the Midwestern United States. With a population of 2,746,388, as of the 2020 United States census, 2020 census, it is the List of Unite ...
, Craig Currie in
New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
, and Sydney "Jack" Williams, who had real estate in
Naples, Florida Naples is a city in Collier County, Florida, United States. As of the 2020 United States census, 2020 census, the population was 19,115, down from 19,539 at the 2010 census. Naples is a principal city of the Collier County, Florida, Naples–Marc ...
and
Indianapolis Indianapolis ( ), colloquially known as Indy, is the List of capitals in the United States, capital and List of municipalities in Indiana, most populous city of the U.S. state of Indiana and the county seat of Marion County, Indiana, Marion ...
. According to
FBI The Federal Bureau of Investigation (FBI) is the domestic Intelligence agency, intelligence and Security agency, security service of the United States and Federal law enforcement in the United States, its principal federal law enforcement ag ...
Special Agent Gregory Yankow in a Federal Criminal Complaint dated April 20, 2010 (Case No. 10-8082), Shapiro "directed others to create and show to the investors documents fraudulently touting Capitol's profitability. Those documents included: financial statements; profit and loss figures fraudulently representing that Capitol's wholesale grocery business was generating tens of millions of dollars in annual sales; personal and business tax returns for Shapiro and Capitol also fraudulently reflecting those sales; and numerous invoices fraudulently reflecting transactions between Capitol and other companies in the wholesale grocery business." According to the criminal complaint, Shapiro incurred "millions of dollars in debts resulting from illegal gambling on sporting events; more than $400,000 for floor seats to the
Miami Heat The Miami Heat are an American professional basketball team based in Miami. The Heat compete in the National Basketball Association (NBA) as a member of the Southeast Division (NBA), Southeast Division of the Eastern Conference (NBA), Eastern C ...
professional basketball team; approximately $26,000 monthly for mortgage payments on his residence in Miami Beach, which was recently appraised at approximately $5.3 million; approximately $7,250 monthly for payments on a $1.5 million Riviera yacht; approximately $4,700 monthly for the lease of a
Mercedes-Benz Mercedes-Benz (), commonly referred to simply as Mercedes and occasionally as Benz, is a German automotive brand that was founded in 1926. Mercedes-Benz AG (a subsidiary of the Mercedes-Benz Group, established in 2019) is based in Stuttgart, ...
automobile;" and an undisclosed amount "for a pair of diamond-studded handcuffs, which he gifted to a prominent professional athlete." The FBI reported that he had diverted $35 million for his personal use from 2005 to 2009. Shapiro allegedly rented his yacht to
NBA The National Basketball Association (NBA) is a professional basketball league in North America composed of 30 teams (29 in the United States and 1 in Canada). The NBA is one of the major professional sports leagues in the United States and Ca ...
players
Shaquille O'Neal Shaquille Rashaun O'Neal ( ; born March 6, 1972), commonly known as Shaq ( ), is an American former professional basketball player who is a sports analyst on the television program ''Inside the NBA''. He is a and Center (basketball), center ...
,
Dwyane Wade Dwyane Tyrone Wade Jr. ( or , born January 17, 1982) is an American former professional basketball player who is currently the co-owner of the Utah Jazz of the National Basketball Association. He is also currently the host of the American a ...
, and
Kevin Garnett Kevin Maurice Garnett ( ; born May 19, 1976) is an American former professional basketball player who played 21 seasons in the National Basketball Association (NBA). Nicknamed "the Big Ticket," Garnett is considered one of the greatest power f ...
and pledged $150,000 to the
University of Miami The University of Miami (UM, UMiami, Miami, U of M, and The U) is a private university, private research university in Coral Gables, Florida, United States. , the university enrolled 19,852 students in two colleges and ten schools across over ...
to have his name placed on the student lounge. The scheme fell apart in November 2009 during the 2008-09 recession when Chicago real estate investor Sherwin Jarol sued to force him into involuntary bankruptcy after Shapiro had stopped making payments to his investors. More than 60 investors, largely from Naples, Indianapolis, and Chicago, including Barry Alvarez, had invested $600,000 in the scheme.


Federal criminal charges

On April 21, 2010, he was charged in
New Jersey New Jersey is a U.S. state, state located in both the Mid-Atlantic States, Mid-Atlantic and Northeastern United States, Northeastern regions of the United States. Located at the geographic hub of the urban area, heavily urbanized Northeas ...
with
securities fraud Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information.money laundering Money laundering is the process of illegally concealing the origin of money obtained from illicit activities (often known as dirty money) such as drug trafficking, sex work, terrorism, corruption, and embezzlement, and converting the funds i ...
.


Federal plea and sentencing

On September 15, 2010, he pleaded guilty before U.S. District Judge Susan D. Wigenton in
Newark, New Jersey Newark ( , ) is the List of municipalities in New Jersey, most populous City (New Jersey), city in the U.S. state of New Jersey, the county seat of Essex County, New Jersey, Essex County, and a principal city of the New York metropolitan area. ...
in ''U.S. v. Shapiro'', 10-cr-00471, to one count of securities fraud and one count of money laundering. On June 7, 2011, he was sentenced to 20 years in federal prison and ordered to make $82,657,362.29 in restitution.


Home transfer

Shapiro was transferred from federal prison to home confinement on June 11, 2020, where he will continue to serve out the remainder of his 20-year sentence under monitoring by the
Federal Bureau of Prisons The Federal Bureau of Prisons (BOP) is a Federal law enforcement in the United States, federal law enforcement agency of the United States Department of Justice that is responsible for all List of United States federal prisons, federal prisons ...
(BOP). The transfer comes on the heels of recent federal prison directives to move some at-risk inmates to home confinement in the face of
COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by the coronavirus SARS-CoV-2. In January 2020, the disease spread worldwide, resulting in the COVID-19 pandemic. The symptoms of COVID‑19 can vary but often include fever ...
outbreaks. Shapiro, who was 51 at the time, was aided by having served over 50 percent of his sentence, while also demonstrating hypertrophic cardiomyopathy and
hypertension Hypertension, also known as high blood pressure, is a Chronic condition, long-term Disease, medical condition in which the blood pressure in the artery, arteries is persistently elevated. High blood pressure usually does not cause symptoms i ...
, both of which put him at a higher risk of life-threatening complication if he were to contract
coronavirus Coronaviruses are a group of related RNA viruses that cause diseases in mammals and birds. In humans and birds, they cause respiratory tract infections that can range from mild to lethal. Mild illnesses in humans include some cases of the comm ...
. Shapiro was transferred to the home of a family member. He will be monitored electronically by the Bureau of Prisons and subject to a range of the bureau's guidelines, which included a ban on the consumption of alcohol, random drug testing, and a monitored walking radius near the residence, and other criteria. He will also be required to wear an ankle monitor at all times. He will be eligible to hold a job, although any work would require approval through the bureau and his earnings will be garnished to repay remaining restitution to his victims. Shapiro also faces a civil case in
Miami Miami is a East Coast of the United States, coastal city in the U.S. state of Florida and the county seat of Miami-Dade County, Florida, Miami-Dade County in South Florida. It is the core of the Miami metropolitan area, which, with a populat ...
, '' U.S. Securities and Exchange Commission v. Shapiro'', 10-cv-21281.


University of Miami scandal

In 2002, Shapiro paid $1.5 million for a 30 percent stake in a sports management company called Axcess Sports, founded by Michael Huyghue. The agency signed several
Miami Hurricanes football The Miami Hurricanes football team represents the University of Miami in college football. The Hurricanes compete in the National Collegiate Athletic Association, NCAA's NCAA Division I, Division I NCAA Division I Football Bowl Subdivision, Foot ...
players, including Vince Wilfork. In August 2010, Shapiro told the ''
Miami Herald The ''Miami Herald'' is an American daily newspaper owned by McClatchy, The McClatchy Company and headquartered in Miami-Dade County, Florida. Founded in 1903, it is the fifth-largest newspaper in Florida, serving Miami-Dade, Broward County, Fl ...
'' that he was writing a book ''The Real U: 2001 to 2010 Inside the Eye of the Hurricane'' in which he promised to tell how the
University of Miami The University of Miami (UM, UMiami, Miami, U of M, and The U) is a private university, private research university in Coral Gables, Florida, United States. , the university enrolled 19,852 students in two colleges and ten schools across over ...
had violated
NCAA The National Collegiate Athletic Association (NCAA) is a nonprofit organization that regulates College athletics in the United States, student athletics among about 1,100 schools in the United States, and Simon Fraser University, 1 in Canada. ...
rules affecting more than 100 players. "Once the players turned pro, they turned their back on me. It made me feel like a used friend," he said. Shapiro was reported to have spent $2 million from 2002 to 2010 boosting University of Miami sports, primarily football, but also included contact with the basketball team under Frank Haith. On August 16, 2011, in a jailhouse interview with
Yahoo! Yahoo (, styled yahoo''!'' in its logo) is an American web portal that provides the search engine Yahoo Search and related services including My Yahoo, Yahoo Mail, Yahoo News, Yahoo Finance, Yahoo Sports, y!entertainment, yahoo!life, and its a ...
sports writer Charles Robinson conducted over 100 hours, Shapiro made good on his promise for revelations, exposing a lack of
NCAA The National Collegiate Athletic Association (NCAA) is a nonprofit organization that regulates College athletics in the United States, student athletics among about 1,100 schools in the United States, and Simon Fraser University, 1 in Canada. ...
-mandated institutional oversight at the university that apparently allowed his illegal and unethical behavior to continue unimpeded for years. To date, 72 University of Miami football players are alleged by Shapiro to have received impermissible benefits from him between 2002 and 2010, including Wilfork, Jon Beason, Antrel Rolle, Devin Hester, Willis McGahee, and the late Sean Taylor. Photos in the Yahoo article showed Shapiro with Kellen Winslow Jr. and Joe Kolchinsky in the VIP section of the Opium Garden Nightclub in 2005, with Haith, Joe Kolchinsky and University of Miami President Donna Shalala in 2008 as he donated $50,000 to the basketball program as well as $3 million in other donations to undisclosed recipients, and with Vince Wilfork in 2002. In response to the allegations, the
University of Miami The University of Miami (UM, UMiami, Miami, U of M, and The U) is a private university, private research university in Coral Gables, Florida, United States. , the university enrolled 19,852 students in two colleges and ten schools across over ...
imposed significant penalties on itself, including the suspension of eight football players, and removed itself from post-season bowl contention for one year. On October 22, 2013, after a two-and-a-half year of investigation, the NCAA announced that the University of Miami football team would be docked three scholarships in each of the next three seasons, a three-year probation, recruiting restrictions, a five-game suspension for the
Miami Hurricanes men's basketball The Miami Hurricanes men's basketball team is the college basketball team of the University of Miami in Coral Gables, Florida. The team competes in the Atlantic Coast Conference (ACC). The University of Miami men's basketball team was formed in ...
coach, and a two-year show-cause order on a total of three former assistant football and basketball coaches. Considering such a long investigation yielded very little incriminating evidence, it was widely viewed that the NCAA investigation and the media attention to the case did not match the relatively minor infractions that were proven to be committed. Before the NCAA penalties were announced, it was revealed that NCAA enforcement staff paid Shapiro's lawyer $25,000 to call in University of Miami personnel during an unassociated legal deposition for Shapiro's bankruptcy, and ask a specific list of questions related to the university's scandal. Shapiro's attorney used her subpoena power in the bankruptcy case to question two witnesses who were crucial to the NCAA's case. The NCAA had no subpoena power, and neither witness had any obligation to talk to the association. The backlash from the revelations about the NCAA's activities, coupled with the university's unprecedented self-imposed sanctions, helped the
Miami Hurricanes The Miami Hurricanes, known informally as The U, UM, or The 'Canes, are the intercollegiate sports teams that represent the University of Miami in Coral Gables, Florida. The Hurricanes compete in NCAA Division I, Division I of the National Coll ...
escape additional harsh NCAA penalties.Andrea Adelson, ESPN.com October 22, 2013


References


Further reading

* {{DEFAULTSORT:Shapiro, Nevin 1969 births Living people 20th-century American Jews 21st-century American criminals 21st-century American Jews 2011 University of Miami athletics scandal American businesspeople convicted of crimes American confidence tricksters American people convicted of money laundering Criminals from Brooklyn Financial scandals Great Recession Miami Hurricanes football People from Lighthouse Point, Florida Pyramid and Ponzi schemes