The US Securities and Exchange Commission (SEC) announced fraud charges Wednesday against a New York-based jewelry wholesaler who allegedly operated a “fraudulent Ponzi-like scheme in which he raised at least $69 million from at least 80 investors, including a number of current and retired police officers and firefighters.”

According to the SEC’s complaint, Gregory Altieri, a licensed geologist from Melville, New York, misappropriated investor funds by falsely claiming that he would use investments to acquire jewelry for a business he owned and operated. He promised prospective investors that their investments guaranteed returns, ranging from 30 to over 100 percent, within a short time-frame—sometimes within 30 days. Rather than using the investors’ money to actually purchase jewelry, Altieri “used the vast amount of the funds to perpetuate and conceal the fraudulent scheme, using monies from new investors to pay earlier investors their anticipated returns.”

The SEC asserts that the scheme began as early as 2015, as Altieri solicited investors, and extended through 2019, by which time he had obtained nearly $70 million and nearly 100 investors. Additionally, Altieri misappropriated funds—over $3 million—from his jewelry business for personal use, including real estate purchases, family vacations, personal credit card charges, family medical bills and his children’s’ college tuitions.

“As alleged in the complaint, Altieri defrauded current and former first responders and other investors who thought they were making safe investments,” said Richard R. Best, Director of the SEC’s New York Regional Office, in a press release. “We will continue to diligently pursue those who prey on investors and abuse their trust.”

In December 2019, Altieri signed a confession of judgment acknowledging his debt. A group of investors filed an involuntary proceeding under Chapter 7 of the Bankruptcy Code in April 2020, claiming Altieri owed them approximately $26 million. The US Attorney’s Office for the Eastern District of New York indicted Altieri for wire fraud in July 2020. Altieri admitted to securities fraud and pleaded guilty to wire fraud in a hearing in the US District Court for the Eastern District of New York.

Altieri is scheduled for sentencing on March 31, 2021 and faces up to 20 years in prison.