Area businessman sentenced for Ponzi scheme
St. Louis, MO – St. Louis area businessman Scott Luster has been sentenced to six years in prison for a Ponzi scheme he ran while the president of Rate Search, Inc.
Luster, a 53-year-old native of Belleville, pleaded guilty to mail and tax fraud charges in February. Rate Search marketed and sold certificates of deposit, but Luster failed to purchase the CDs for customers despite their directions, and did not tell them he hadn't done so. He used the customer's money for personal and other business expenses.
In addition to the prison sentence, Luster must pay nearly $5.2 million in restitution, most of which will go to victims of the scheme.