Dentists Accused of Duping Other Dentists in Investment Ponzi Scheme

Canadian dentist Dr. Peter Sbaraglia

Here we go with another Beranard Maddoff type Ponzi scheme, but this time with dentists.

Dr. Joseph Radice had every reason to believe his money was in good hands.

The Woodbridge dentist had invested $617,000 of hard earned savings with a dental colleague he believed was a financial whiz who had made a killing on the New York and Toronto stock exchanges.

Today, Radice alleges he is one of at least 50 investors — many of them prominent dentists — looking for $50 million in lost funds. In allegations filed in court Radice accuses former colleague Peter Sbaraglia and wife Mandy, both dentists, of being key cogs in a sophisticated Ponzi scheme.

What Radice and investors did not know was that the Ontario Securities Commission (OSC) was actively investigating the scheme, even as they were being reassured that their money was safe and earning vast returns.

“If they are a protective government agency then, hey, (the OSC) should have stepped up,” Radice said in an interview. “What safeguards are in place to protect investors from unscrupulous people?”

The safeguard of common sense when someone promises you a 25 per cent return on your investments. It amazes me the lack of due diligence that some people practice when investing large sums of money.