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Steven Hoffenberg is the former chairman of Towers Financial Corporation, a bill collection agency, that he used in a Ponzi scheme. The firm collapsed in 1993, and in 1995 Hoffenberg pleaded guilty to bilking investors out of $475 million. In 1997 Judge Robert W. Sweet sentenced him to 20 years in prison, plus a $1 million fine and $463 million in restitution (per the Bureau of Prisons he was released in October 2013). He settled a civil suit with the U.S. Securities and Exchange Commission for $60 million. Hoffenberg is currently paying back all of the above investors debt.[1][2] He was the owner of the New York Post.

At the time the SEC considered the fraud to be "one of the largest Ponzi schemes in history."[3]

In July 2019, he claimed that the American financier Jeffrey Epstein was his co-conspirator in the Ponzi scheme.[4]


  1. ^ Frank, Robert (March 13, 2009). "From Ponzi to Madoff". The Wall Street Journal. Retrieved March 13, 2009.
  2. ^ Eaton, Leslie (March 8, 1997). "Hoffenberg Gets 20-Year Sentence in Fraud Case". The New York Times. Retrieved March 13, 2009.
  3. ^ "Arrest of Steven Hoffenberg Announced in New York" (PDF). SEC News Digest. February 18, 1994. p. 2. Retrieved March 13, 2009.
  4. ^ Briquelet, Kate; Conner, Tracy (July 14, 2019). "Ponzi Scheme Victims Say Epstein Swindled Them". Daily Beast.