Man given 25-year prison sentence for cheating investors

CHICAGO (AP) - A suburban Chicago man who engaged in a Ponzi scheme that defrauded hundreds has been sentenced to 25 years in prison.

U.S. District Court Judge James Zagel, in imposing the sentence Thursday, said 55-year-old Daniel Spitzer of Barrington caused "very substantial damage."

Prosecutors say that between 2004 and 2010, Spitzer used money he raised from investors for his own benefit and to make Ponzi-type payments to investors.

Court records indicate Spitzer headed several investment funds, including Kenzie Financial Management and Kenzie Services LLC.

Prosecutors say Spitzer and co-defendant Alfred Gerebizza falsely told prospective investors different Kenzie Funds had different levels of risk and investment strategies. They invested less than a third of about $105 million raised from investors.

Gerebizza has pleaded guilty to mail federal income tax fraud. He is in federal custody awaiting sentencing.