Indianola Man Indicted On Wire Fraud And Felon In Possession Of A Firearm
Matthew G. Whitaker, United States Attorney for the Southern District of Iowa, announced that on May 21, 2008, a United States Grand Jury for the Southern District of Iowa returned a two-count indictment charging Nicholas Palazzo, 51, Indianola, Iowa, with Wire Fraud and Felon in Possession of a Firearm.
The Indictment alleges that Palazzo devised a fraudulent investment scheme promising abnormally high returns on investments. The investments were then not made and were used instead by Palazzo for personal purposes. The scheme was perpetrated from approximately August 2007 to January 23, 2008 by paying initial investors limited funds with money obtained from subsequent investors (“Ponzi Scheme”). The wire fraud involved the use of text messaging that signaled through a Verizon switch in Colorado.
The Indictment further charges that Palazzo possessed two Remington 870 .12 gauge shotguns on or about December 7, 2007, after having been previously convicted of a felony.
Also, as back ground information: A Wire Fraud conviction carries a statutory maximum sentence of 20 years in prison and a $250,000 fine. A Felon in Possession of a Firearm conviction carries a statutory maximum sentence of 10 years in prison and a $250,000 fine.
Palazzo is presently in federal custody. An arraignment date has not yet been set.
The FBI and the Indianola Police Department investigated this matter and it is being prosecuted by the U.S. Attorney’s Office, Southern District of Iowa.
Note: All defendants are considered innocent until proven guilty in a court of law.