West Palm Beach Man guilty of investment fraud – CBS Tampa

MIAMI, Florida (CW44 News at 10) – Fifty-four-year-old West Palm Beach, Florida resident Salvatore Rinaldi pleaded guilty this week to a South Florida district court for organizing and managing two investment fraud schemes that resulted in victims across the country to lose a combined more than 3 million dollars.

Rinaldi was the founder and CEO of the Sanctum Group of Companies, Inc. and Sanctum Publishing and Marketing, Ltd. and Sanctum Media Group, Inc. (“Sanctum Companies”). During a change of hearing before US District Judge Roy K. Altman, Rinaldi admitted that he and others used Sanctum companies to solicit money from victim investors. To get people to invest, Rinaldi lied to them, promising to use their money to build a profitable business and ensure a solid return on their investment. In addition, Rinaldi failed to tell investors that he had a history of violating federal securities laws and that he used most of their money to pay his personal expenses, make cash withdrawals, pay former investors, and pay undisclosed commissions and fees. From 2011 to 2015, Rinaldi defrauded approximately 14 Sanctum investors out of approximately $1.5 million.

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Rinaldi has also been associated with the management of Magnum Health Management, Magnum Media Management and Magnum Media Mining (“Magnum Companies”). During the hearing change, Rinaldi admitted that he presented himself to the public as the CEO, owner and operator of Magnum Companies. When soliciting money for Magnum companies, Rinaldi falsely told investors that he would use their money as working capital and build diabetes clinics. Instead, Rinaldi used almost all of the money for his personal use and benefit. From roughly 2017 to 2019, Rinaldi defrauded approximately 14 Magnum investors out of more than $1.6 million.

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Rinaldi pleaded guilty to one wire fraud. Judge Altman will sentence Rinaldi on January 4, 2022, at 2:00 p.m., in Federal District Court in Fort Lauderdale. He faces up to 20 years in federal prison.

Juan Antonio Gonzalez, acting attorney general of the United States for the Southern District of Florida, and George L. Piero, FBI Miami, pleaded guilty.

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This case is being tried by US Assistant Attorney General Yesel Valdés.

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