Philadelphia lawyer and N.J. associates charged with running Ponzi scheme targeting senior citizens
Michael Kwasnik, a 42- year old lawyer from Philadelphia and several of his New Jersey associates have been charged by the Pennsylvania Attorney General of running an $8.5 million Ponzi scheme targeting elderly people. Kwasnik and his 70-year old father, William Kwasnik were among the five defendants named in a lawsuit that was filled in the Essex County Superior Court. They ran the scheme through a firm called the Liberty State Financial Holdings Corp. based in Cherry Hill, as well as a subsidiary. The suit claims that Kwasnik promised senior citizens that these companies were good investments and that they would not lose any money. The suit claims that some of the money went into keeping the scheme afloat, but most of it went to Kwasnik, his father and their associates spread across six states.