Former Chicago nightclub owner accused of running Ponzi scheme

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Former Chicago nightclub owner accused of running Ponzi scheme
Charges allege Anthony Demasi used investments to pay off debts, fund clubs

Tribune staff report
February 28, 2009
A former Chicago nightclub owner whose investment firm, Tsunami Capital LLC, was sued by the federal government amid fraud allegations has been indicted on allegations of running a Ponzi scheme, authorities said Friday.

Anthony Demasi, 34, was indicted Thursday on three counts of wire fraud and two counts of mail fraud.

The federal Commodity Futures Trading Commission filed a civil suit against Demasi and Tsunami in 2007.

Authorities said Demasi lured more than two dozen victims into making investments of about $4.7 million, which he used to fund nightclubs, pay gambling debts and pay earlier investors. Losses totaled about $2.8 million, according to the charges filed late Thursday against Demasi.