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PRESS RELEASE: Importers Charged with Securities Fraud, Defendants, Eric Aronson, Vincent Buonauro, and Fredric Aaron Accused of Defrauding Investors of $26 Million

U.S. Attorney’s Office
April 05, 2012

Eastern District of New York
(718) 254-7000

Importers Charged with Securities Fraud, Defendants Accused of Defrauding Investors of $26 Million

Three principals of a company that imported paving stones from Australia were charged with conspiracy, securities fraud, and money laundering in an indictment unsealed today in federal court in Central Islip, New York. The charges against Eric Aronson, Vincent Buonauro, and Fredric Aaron arose from their solicitation of investor money for, and their operation of, Permapave Industries and Permapave USA (“Permapave”). Permapave marketed porous paving stones in the United States that were manufactured in Australia.

The defendants are scheduled to be arraigned this afternoon before United States Magistrate Judge Gary R. Brown at the United States Courthouse at 100 Federal Plaza, Central Islip, New York.

The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and Janice K. Fedarcyk, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office. The criminal case has been assigned to United States District Judge Arthur D. Spatt.

According to the indictment, the defendants issued promissory notes to investors and promised to use the proceeds to finance shipments of Permapave paving stones from Australia to the United States. The indictment and court filings charge that from 2006 to 2010, the defendants operated Permapave as a Ponzi scheme, raising approximately $26 million through false representations and paying back some investors from the investments of other investors because of the minimal revenues Permapave generated. The government’s pleadings also allege that the defendants converted more than $3 million of investor funds for their personal use, including home mortgage payments, down payment on a residence, automobile payments, and credit card purchases for watches, jewelry, clothing, vacation resorts, and air travel.

“The defendants allegedly abused the trust placed in them by their investors by lying and stealing the investors’ money. They promised a sound investment in a quality product but instead shuttled the investors from one deceptive securities offering to another in an attempt to maintain their house of cards. This office is committed to protecting the investing public and will tirelessly investigate and prosecute those who defraud investors who believed they were investing in a legitimate enterprise,” stated United States Attorney Lynch.

FBI Assistant Director in Charge Fedarcyk stated, “The defendants are alleged to have misled investors and, in paying some of them with proceeds from others, engaged in a Ponzi scheme to conceal how flimsy the investment was. The FBI is always at the ready to uncover unscrupulous investment schemes.”

The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a maximum of 20 years’ imprisonment on the most serious count.

The government’s case is being prosecuted by Assistant United States Attorneys William P. Campos and Karen Hennigan.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency task force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

The Defendants:

Eric Aronson, age 43
Vincent Buonauro, age 40
Fredric Aaron, age 48

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About FREDERICA CADE

The fellow that can only see a week ahead is always the popular fellow, for he is looking with the crowd. But the one that can see years ahead, he has a telescope but he can't make anybody believe that he has it. ~~~~Will Rogers __The woman who follows the crowd will usually go no further than the crowd. The woman who walks alone is likely to find herself in places no one has ever been before.~ Albert Einstein _________________________________________I'm a Citizen that takes Politics seriously. I Research and try to Blog or Post things you don't normally hear. Do we want Politics involving Smoke and Mirrors or the Truth? fredericacade@gmail.com_______________________________________________ ~"I never work better than when I am inspired by anger; for when I am angry, I can write, pray, and preach well, for then my whole temperament is quickened, my understandingsharpen​ed, and all mundane vexations and temptations depart.” ~Dr. Martin Luther King Jr. _________________________________________________________________________________________ ~"The bosom of America is open to receive not only the Opulent and respectable Stranger, but the oppressed and persecuted of all Nations and Religions; whom we shall welcome to a participation of all our rights and privileges, if by decency and propriety of conduct they appear to merit the enjoyment".~___________________________________ George Washington, Address to the Members of the Volunteer Association of Ireland, December 2, 1783

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