Projo 7 to 7 News Blog

NEWPORT, R.I. -- State prosecutors say a Newport socialite and former commodities trader now faces 142 separate charges in connection with an alleged Ponzi scheme that bilked millions of dollars from 47 investors -- many of whom she had met on the shimmering waterfronts of Newport and the Caribbean.

Eleven months after the state police first arrested Elizabeth C. Baldwin at her Newport apartment overlooking the harbor, state prosecutors this week finished their pre-trial investigation into the case and filed specific allegations against Baldwin in Newport County Superior Court.

Authorities allege that Baldwin, 63, netted $7 million from an elaborate pyramid scheme in which she paid off early investors with money she swindled from later investors. The scheme allegedly allowed Baldwin to buy a 65-foot mahogany sloop, which she skippered in the centennial Newport-to-Bermuda race in 2006, rent a house in St. Barts and travel throughout the Caribbean and Europe.

``With this 142-count criminal case we are alleging that the defendant ran an investment fund that was essentially a front for a Ponzi scheme,'' Attorney General Patrick C. Lynch said Friday. ``We allege that in addition to funding her yachting and high-society lifestyle, the money she swindled also went to pay out early investors in the Ponzi pyramid.''

The charges are broken down into various felonies: obtaining money ($500 or more) under false pretenses, embezzlement over $100, unlawful appropriation over $1,000 and computer fraud. She also faces one count of writing a fraudulent check.

Baldwin, who was released on bail last May and ordered to surrender her passport, could not be reached for comment Friday.

The formal filing of the charges will give Baldwin and her lawyer their first look at the state's case against her. A Superior Court judge will review the case on May 4.

 Tags  business crime Newport RI Ponzi

Comments

Don said:

How do you get to be a "socialite"? Just wondering.

Link | April 3, 2009 6:45 PM
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Ed said:

The laws need to be changed now to stop these people from committing these crimes. They need to know that all of their assets will be taken and frozen and so will their accomplisses. Do it now!!!!

Link | April 3, 2009 8:15 PM
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Miss Priss said:

Well, it will be quite interesting to see who are the Newport Socialites who where entrapped in Liz' net! Can't wait to hear who they are!

Link | April 3, 2009 11:28 PM
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Dave F. said:

You really gotta wonder - just how many of these things are out there? My guess is - A LOT!

Link | April 4, 2009 8:04 AM
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