Wheeling man pleads guilty in Ponzi scheme

Frank Castaldi, 56, of Wheeling has admitted guilt on federal charges surrounding a Ponzi scheme.

Castaldi appeared in federal court Wednesday to plead guilty to one charge of mail fraud and one charge of impeding the Internal Revenue Service.

The federal complaint charged Castaldi of running a 20-year Ponzi scheme involving 450 investors and $77 million. More than 300 of the investors lost over $30 million in the scam.

Going back to the mid-'80s, according to the plea agreement, Castaldi used several firms based in Norridge to sell six-month bonds guaranteeing returns of 10 to 15 percent. Over the years, he made good on some of the investments through additional investments, but eventually the scheme was discovered and came crashing down.

Sentencing was set for Dec. 9 in the courtroom of Judge John Darrah. Castaldi faces a maximum of 23 years, with guidelines set from 151 months to 188 months, or 12 to 15-plus years. He also face fines of $500,000 and more, although investors are not likely to see the $30 million again.

Castaldi recently moved to Wheeling and previously resided in Prospect Heights.