'Madoff of the '80s": J. David Dominelli, Notorious Local Scamster, Dead at 68

[MindPilot]

During the go-go 1980s, the low-key J. David Dominelli managed to transform himself into a high-flying investment superstar who promised fantastic returns. But his elaborate Ponzi scheme crumbled, robbing investors of tens of millions. Then came ruin as the man known as "Captain Money" was convicted and spent a decade in prison.

Dominelli, who also played a role in the collapse of Mayor Roger Hedgecock's political career, will be in the headlines again this week as news spreads of his death in Chicago two months ago at the age of 68.

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In what the U-T called a "bizarre" Ponzi scheme, Dominelli convinced investors that he had a magic touch with financial investments. But he was using new money to pay off previous investors.

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When the scam finally collapsed, Dominelli fled to the Caribbean but was banished back to the United States to face prosecution. He received a 20-year federal sentence and served 10.5 years of it.


http://www.voiceofsandiego.org/articles/2009/10/13/this_just_in/311dominelli101209.txt