Appeals court: Ex-financial adviser must repay Sergei Fedorov, others
Joseph Zada ordered to repay victims of Ponzi scheme
DETROIT – An ex-financial adviser to former Detroit Red Wings star Sergei Fedorov will have to repay the hockey player and more than 20 other people after selling them fake investments in overseas oil.
Joseph Zada's Ponzi scheme cost Fedorov $43 million. He was charged with mail and wire fraud, money laundering and transporting stolen property.
He is accused of using his Grosse Pointe Shores mansion and horse farm in Florida to impress would-be investors with his apparent money-earning prowess.
However, a 27-county indictment said it was all phony and that the money from investors, including Fedorov, was used to maintain Zada's lavish lifestyle which included extravagant parties and luxury vehicles.
View: Joseph Zada indictment
The U.S. 6th Circuit Court of Appeals ruled against Zada on Thursday. He had appealed a lower court's ruling which ordered him to pay $56 million in damages and another $56 million for running the Ponzi scheme.
Copyright 2015 by ClickOnDetroit.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.