Carolyn FortinoOct 5, 2017, 10:28 pm

Feds: Pound Ridge man was running $19M ponzi scheme

Michael Scronic, 46, has been accused of fraudulently raising money from 45 investors

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A hedge fund managed from Pound Ridge has been accused of running a $19.75M ponzi scheme to pay for a lavish lifestyle, including multiple vacation homes, trips and country club fees.

Federal investigators say that Michael Scronic, 46, fraudulently raised money from 45 investors in the "Scronic Macro Fund", a hedge fund business he had been running from his home since 2010.

According to the criminal complaint, the scheme started 7 years ago, as Scronic acquired investors by lying about the assets in his fund, all told losing over $15M in that time.

The complaint states that some of the investor money was used for trades, but more than $500,000 per year was used on personal expenses.

Scronic made an initial appearance in court on Thursday on federal securities fraud and wire fraud charges. Each of the charges carries a maximum sentence of 20 years in prison.

Scronic was released from jail on a $500,000 bond, secured by a vacation home in Vernont and land in Pauling, New York. He is due back in court on November 1.

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