From myfoxny.com by David B. Caruso from the AP:
Federal authorities say a Brooklyn man ran a Ponzi scheme that ripped off investors for 31 years by diverting their money from stocks to ventures including a mail-order pornography business.
Philip Barry was arraigned Tuesday on securities fraud charges.
Prosecutors and the Securities and Exchange Commission say the businessman had about 800 clients who had given him $40 million since the late 1970s.
The SEC says Barry secretly sunk much of the money into bad real estate deals but also used some client money to run a side business that sold "pornographic materials."
Barry has previously told reporters that his real estate investments were legitimate and that he is still trying to earn a profit for his clients.
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